Khaitan & Co advised ANTA Sports on securing government approval under Press Note 3 of 2020 for its indirect acquisition of 29.06% in PUMA SE, a transaction involving cross-border investment from a neighboring country.
ANTA Sports Secures PN3 Approval for PUMA Stake Acquisition
Khaitan & Co has advised ANTA Sports Products Limited in obtaining prior government approval under Press Note 3 (2020) of the Consolidated FDI Policy for its proposed indirect acquisition of 29.06% of the issued and outstanding share capital of PUMA SE. The approval was necessary as the transaction falls within the purview of PN3, which mandates government vetting of foreign investments originating from countries sharing a land border with India.
Press Note 3, issued amid heightened scrutiny of cross-border investments, requires prior governmental clearance for indirect routes of investment where the ultimate beneficial owner is from a border-sharing jurisdiction. Given ANTA Sports’ origin, the transaction triggered PN3 compliance, necessitating a thorough review process before approval.
Legal Advisory and Transaction Significance
"Transactions touching PN3 require careful structuring and proactive engagement with authorities,"observed sources familiar with the deal. Khaitan & Co’s role underscored the importance of regulatory foresight in cross-border M&A, particularly in sensitive screening regimes. The approval marks a key milestone in ANTA’s global expansion strategy and reflects confidence in India’s evolving FDI governance framework.
