CCI Approvals for Acquisition of Various Entities- 14th March 2023

On 14th March 2023, the Competition Commission of India (CCI), the fair trade regulator, approved the following acquisition:

i. Acquisition of Meritor, Inc., by Cummins Inc.

ii. Acquisition of METRO Cash & Carry India by Reliance Retail Ventures (RRVL)

iii. Acquisition of 100% of the equity share capital of L&T Infrastructure Development Projects Limited and Kudgi Transmission Limited, by Epic Concesiones Private Limited and Infrastructure Yield Plus II, respectively.

CCI approves the Acquisition of Meritor, Inc., by Cummins Inc.

The CCI has approved the acquisition of sole control of Meritor, Inc., by way of the purchase of shares by Cummins Inc.

Acquirer- Cummins Inc. (Cummins).

Target- Meritor, Inc. (Meritor).

Highlights:

i. Meritor, a stock corporation under the United States (US) law, and Cummins, a stock corporation under the laws of Indiana, US, proposed to notify the CCI of the acquisition of sole control of Meritor by way of the purchase of shares by Cummins.

ii. It constitutes an acquisition under the terms of Regulations 13(1A) of the Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011.

Purpose:

Both Meritor and Cummins are engaged in the market for manufacturing and supply of automotive components in India.

• In practice, their product portfolios have different functions and are focused on distinct aspects of the vehicle.

CCI approves the Acquisition of METRO Cash & Carry India Pvt Ltd by Reliance Retail Ventures Limited (RRVL):

The CCI has approved the acquisition of 100% of the issued and paid-up equity share capital of METRO Cash & Carry India by Reliance Retail Ventures (RRVL),  a subsidiary of Reliance Industries Limited(RIL).

Acquirer- Reliance Retail Ventures Limited (RRVL).

Target- METRO Cash and Carry India Private Limited.

Highlights:

i. The proposed combination is filled under Section 6(2) read with Section 5 of the Competition Act, 2002 (as amended).

• It requires the filing of a merger notification for an acquisition of shares, assets, control, or voting rights, parties to the acquisition must jointly have either asset in excess of Rs 2,000 crore (Rs 20,000 million) in India or turnover in excess of Rs 6,000 crore (Rs 60,000 million) in India.

CCI approves the Acquisition of 100% of the Equity Share Capital of L&T IDPL  by ECPL and KTL by IYP II

The CCI has approved the acquisition of 100% of the Equity Share Capital of L&T Infrastructure Development Projects Limited (L&T IDPL) by Epic Concesiones Private Limited (ECPL) and Kudgi Transmission Limited (KTL) by Infrastructure Yield Plus II (IYP II).

The proposed combination envisages the acquisition of

• ECPL acquired 51% of the equity share capital of L&T IDPL from Larsen and Toubro Ltd and 49% of CPPIB India Private Holdings Inc.
• 100% of the equity share capital of KTL, a wholly-owned subsidiary of L&T IDPL, by IYP II.

Acquirer 1- Epic Concesiones Private Limited (ECPL)

Target 1- L&T Infrastructure Development Projects Limited (L&T IDPL)

Acquirer 2- Infrastructure Yield Plus II (IYP II)

Target 2- Kudgi Transmission Limited (KTL)

Highlights:

i. The Acquisition constitutes under Section 31(1) of the Competition Act, 2002.

ii. The relevant markets may be identified as Horizontal markets and Vertical markets.

• Horizontal markets- Market for power transmission in India.
• Vertical markets- Market for power generation in India (upstream) and Market for power transmission in India (downstream).

Recent Related News:

i. On 14th February 2023, the Competition Commission of India (CCI) approved the acquisition of a certain equity share capital of LT Foods Limited, a subsidiary of Daawat Foods Limited (DFL), by SALIC International Investment Corporation (SIIC), under Section 31(1) of the Competition Act, 2002.

ii. On 15th February 2023, the Competition Commission of India (CCI) approved the acquisition of certain assets of Jaiprakash Associates Limited and its associates by Dalmia Cement (Bharat) Limited.

About the Competition Commission of India (CCI):

Acting Chairperson – Sangeeta Verma
Headquarters- New Delhi, Delhi
Establishment- 14th October 2003 (Operational from 2009)