27 May, 2015
On March 5, 2015, CCI approved the proposed transaction involving acquisition of (i) 50.50 % of the equity shares of Halla Visteon Climate Control Corporation (‘HVCC’) by Hahn & Co. Auto Holdings Co. Limited (‘HCO’); and (ii) 19.49 % equity shares of HVCC by Hankook Tire Co. Limited (‘Hankook’), from VIHI LL (‘VIHI’) which is a wholly owned subsidiary of Visteon Corporation (‘Visteon’). The notice was filed pursuant to a share purchase agreement executed between HCO, Hankook, HVCC, Visteon and VIHI.
CCI observed that HCO is a special purpose vehicle established in South Korea for the purpose of investments by the Hahn and Company I Private Equity Fund, which in turn is controlled and managed by Hahn and Company, a private equity investments management firm. CCI further observed that Hankook, a manufacturer of tyres, tubes and alloy wheels, had no presence in India, except for a liaison office for management of its distribution network. CCI found that HVCC is engaged in the manufacture of automobile climate control systems including heating, ventilation and air-condition (‘HVAC’) products and radiators, blowers, and compressors for vehicles. Further, HVCC is present in India through two subsidiaries, (i) Visteon Automotive Systems India Private Limited; and (ii) Halla Visteon Climate Systems India Private Limited.
In the course of its assessment, CCI observed that HCO was not engaged in the business of automotive climate control systems in India. Further there were no overlap between the products and services of HCO and HVCC and Hahn and Company in India.
Accordingly, CCI held that the proposed acquisition is not likely to have any AAEC in India and approved the transaction under Section 31(1) of the Competition Act.
For further information, please contact:
Zia Mody, AZB & Partners
zia.mody@azbpartners.com
Abhijit Joshi, AZB & Partners
abhijit.joshi@azbpartners.com
Shuva Mandal, AZB & Partners
shuva.mandal@azbpartners.com
Samir Gandhi, AZB & Partners
samir.gandhi@azbpartners.com
Percy Billimoria, AZB & Partners
percy.billimoria@azbpartners.com
Aditya Bhat, AZB & Partners
aditya.bhat@azbpartners.com
