The Competition Commission of India (CCI) has permitted deemed approval to IBM Corp. for an internal restructuring that covers its India business under a fast-track process.

In an official statement from the competition watchdog states that the transaction notified by two new companies set up as part of IBM’s internal reorganisation—Kyndryl Holdings LLC and Grand Ocean Managed Infrastructure Services Pvt. Ltd—has been granted.
IBM’s international corporate reorganization prefers to spin off its global managed infrastructure services (MIS) into a separate business.

The CCI states that the target structure would be achieved by a separation of its MIS business into the newly incorporated companies Kyndryl Holdings and Grand Ocean Managed Infrastructure Services, the acquirers.

However, these two entities are presently not involved in any business activity and have been associated only to implement the proposed deal. Post the transaction, the acquirers will house and operate IBM’s MIS business.

IBM’s MIS business in India is presently kept in Network Solutions Pvt. Ltd and IBM India, which are indirect wholly owned subsidiaries of IBM.