Fair trade regulator Competition Commission of India (CCI) said it has cleared the acquisition of certain shareholding in Hitachi Astemo Ltd (HAL) by Japan Investment Corporation and Honda Motor Co Ltd (HMCL).
The proposed deal relates to the acquisition of 20 per cent voting rights in HAL by JICC, an affiliate of Japan Investment Corporation, together with certain control rights, board representation and other rights, according to an official release.
JICC-01 Ltd Partnership is managed by JICC G.K, an affiliate of the Japanese government’s sovereign wealth fund Japan Investment Corporation (JIC).
Also, the regulator approved the acquisition of an additional 6.6 per cent of voting rights in HAL by HMCL, such that 40 per cent of the voting rights in HAL are held by HMCL.
In addition, CCI also gave its nod to the acquisition of a 49 per cent stake in Hitachi Astemo Electric Motor Systems (HAEMS) by HAL, such that 100 per cent of the shareholding of HAEMS is held by HAL.
HAEMS, is engaged in the development, manufacture, and sales of motors for electric vehicles, while HAL is engaged in the manufacture of auto parts for automobiles and two-wheeled motor vehicles.
HMCL is engaged in activities such as the manufacture and sale of automobiles, two-wheelers, power products, auto parts, and research and development.
Deals beyond a certain threshold require approval from CCI, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace.