India approves REC's merger with state lender PFC

What's the deal? The President of India has approved the merger of RECDealroom has a profile for this one. Try Dealroom → Limited into Power Finance CorporationDealroom has a profile for this one. Try Dealroom → Limited (PFC). Once the scheme takes effect, all of REC's assets and liabilities transfer to PFC, and REC will be dissolved under Sections 230-232 of the Companies Act, 2013.

Why now? The merger had already cleared both companies' boards and was awaiting Presidential consent, the final legal hurdle.

What each does: Both are state-backed lenders to India's power sector. PFC is the acquiring entity; REC will cease to exist as a separate company.

The signal: Combining India's two largest power-sector financiers under one roof consolidates the country's infrastructure lending as it funds a fast-growing renewables pipeline.

Read more: Power Line

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