3 August, 2017
CCI approves acquisition of the electrical lighting business of GE India Industrial Pvt. Ltd. by Venture Lighting India Ltd.
On May 2, 2017, the acquisition of the electrical lighting business of GE India Industrial Pvt. Ltd. (‘ GEIIPL’) by Venture Lighting India Ltd. (‘ VL India’) was approved by CCI.
CCI observed a horizontal overlap between the products offered by the parties, in respect of different types of lighting products such as electric lamps, fittings or luminaries and accessories or components. It also noted a vertical relationship between the parties, as VL India supplied small quantities of electrical lamps to GEIIPL. However, this was not found to have any AAEC on competition in India. In light of the insignificant combined market shares of the parties [0% to 5%] in each of the markets for electric lamps, fittings or luminaries and accessories or components and the presence of well established competitors, CCI approved the proposed
combination as it was unlikely to cause an AAEC in India.
CCI approves the acquisition of 25.12% of Sona Koyo Steering Systems Ltd. by JTEKT Corporation
On May 5, 2017, CCI approved the acquisition of 25.12% of Sona Koyo Steering Systems Ltd. (‘ SKSSL’) by JTEKT Corporation (‘ JTEKT’) from Sona Autocomp Holding Ltd. (‘Seller’).
JTEKT is a manufacturer and supplier of automotive parts, bearings, and machine tools. SKSSL is engaged in the business of automotive parts such as steering systems and its parts, catering to passenger vehicles, farm equipment and commercial vehicle OEMs. The CCI noted that JTEKT already held 20.1% stake in SKSSL, in addition to the right to appoint two directors on its Board. The CCI observed an inter-connected step involved, i.e., transfer of stake held by SKSSL in Sona Skills Development Centre Ltd. to the Seller. The CCI further observed a vertical relationship between a subsidiary of JTEKT with SKSSL. It was of the view that such vertical relationship was unlikely to cause an AAEC in India.
CCI approves the acquisition of the merchant acquiring business from Citibank NA, Citibank Overseas Investment Corporation (‘COIC’) and Citibank NA India by Wirecard Acquiring & Issuing GMBH, Wirecard Technologies GMBH, Wirecard Sales International Holding GMBH and Wirecard India Pvt. Ltd.
On May 12, 2017, CCI approved the acquisition of the merchant acquiring business from Citibank A, COIC and Citibank NA India (collectively referred to as ‘Sellers’) by Wirecard Acquiring & Issuing GMBH, Wirecard Technologies GMBH, Wirecard Sales International Holding GMBH and Wirecard India Pvt. Ltd. (collectively referred to as ‘Acquirers’).
CCI noted that the merchant acquiring business included merchant acquiring services and acquiring processing services. Further, activities such as settlement of dues, terminals, technical services for online transactions, authentication of transactions and other payment gateways, etc. were associated with merchant acquiring services, while authorization and capture services fell within the ambit of acquiring processing services. The CCI observed that although the Acquirers were present in the upstream market of acquiring processing services and the Sellers were present in the downstream market of merchant acquiring services, there was no actual vertical relationship between the parties. Additionally, given the insignificant market shares of the Acquirers and Sellers in the upstream and downstream markets and in the presence of wellestablished players, CCI approved the proposed combination as it would not raise any AAEC in India.
CCI approves acquisition of 6.02% of Flipkart Ltd. by Aceville Pte. Ltd.
On May 12, 2017, CCI approved the acquisition of 6.02% of the equity share capital of Flipkart Ltd. (‘Flipkart’) by Aceville Pte. Ltd. (‘Aceville’).
The CCI noted that Aceville was an investment holding company inter alia, engaged in: (i) providing internet access; and (ii) providing internet data centre services. It was the whollyowned subsidiary of TCH Delta Ltd. and its ultimate parent company was Tencent Holdings Ltd., that was inter alia engaged in providing value added services and online advertising services in China. Notably, in addition to the acquisition of 6.02% equity shares of Flipkart, Aceville was also entitled to nominate one director on the board of Flipkart.
CCI approves acquisition of 21.63% shareholding in Tata Teleservices Ltd. by Tata Sons Ltd., Tata Steel Ltd., Tata Industries Ltd., Tata Communications Ltd. and Tata Power Company Ltd. from NTT Docomo Inc., Japan.
On May 24, 2017, CCI approved the acquisition of 21.63% shareholding in Tata Teleservices Ltd. (‘ TTSL’) by Tata Sons Ltd., Tata Steel Ltd., Tata Industries Ltd., Tata Communications Ltd. and Tata Power Company Ltd. from NTT Docomo Inc., Japan (‘Docomo’).
The proposed combination arose pursuant to certain consent terms entered into between Tata Sons and Docomo in connection with an international arbitration award passed by the London Court of Arbitration (‘ LCIA’) to settle the dispute between Docomo and Tata Sons. The CCI noted that Docomo did not have any independent presence in the telecom sector and the proposed combination envisaged its exit from TTSL. Hence, the change in control over TTSL consequent to the proposed combination would not result in change in competition dynamics and was not likely to raise any AAEC in India.
For further information, please contact:
Zia Mody, Partner, AZB & Partners
zia.mody@azbpartners.com
