New Delhi: The Competition Commission of India (CCI) has approved Kyndryl Holdings and Grand Ocean Managed Infrastructure Services’ proposal for the internal restructuring of IBM Corporation under the green channel route. Green channel is an automatic approval system, whereby a combination is deemed to have been approved by the CCI upon receiving the filing of the notice for the combination by the parties concerned.
“International Business Machines Corporation (IBM Corporation/ Seller) plans to spin off its global MIS Business into a new public company, within the framework of an International corporate internal re-organisation,” a press release stated.
This will be achieved by separation of the managed infrastructure services (MIS) business into newly incorporated companies– Kyndryl Holdings LLC and Grand Ocean Managed Infrastructure Services Pvt Ltd– which are presently not engaged in any business activity and have been incorporated only to implement the proposed transaction.
The MIS business is the business of infrastructure services unit of IBM Corporations Global Technology Services segment and includes security, regulatory, risk management services, identity management services offerings of the security services unit of IBM Corporation’s Cloud and Cognitive software segment, but excludes the public cloud platform offering of the infrastructure services unit, the release noted.
“Commission receives notice under Green Channel filed by Kyndryl Holdings and Grand Ocean Managed Infrastructure Services in relation to internal restructuring of IBM Corporation and is deemed approved,” the regulator said in a tweet.