Competition Commission of India (CCI) said on Thursday that an internal restructure of Motherson Group has been granted deemed approval.
The competition watchdog said in a statement that it has received a notice from the group under the green channel provision on the intra-group reorganization and that it has been deemed approved.
Automatic approval is granted under the green channel when a transaction is notified to CCI as per specified format after a self-assessment. The filing was made by Motherson Sumi Systems Ltd. (MSSL), Samvardhana Motherson International Ltd. (SAMIL) and Sumitomo Wiring Systems Ltd. (SWS)
As per the transaction, MSSL’s entire domestic wiring harness undertaking (DWH) will be demerged into a newly incorporated wholly-owned subsidiary of MSSL called Motherson Sumi Wiring India Ltd. (MSWIL). The transaction also includes amalgamation of SAMIL and MSSL.
MSSL is the flagship company of the Motherson Group and is a leading automotive component manufacturer for original equipment manufacturers. It makes wiring harness, vision systems and moulded and polymer products. SAMIL is the largest shareholder of MSSL and provides operational, strategic, and management support to all Motherson group companies. It is engaged in the production of automotive components including lighting systems.
MSSL had in April informed stock exchanges that public shareholders have voted in favour of the proposal with an overwhelming majority, paving the way for successful completion of the proposed restructuring.
As a result of the reorganisation, MSWIL, the demerged entity, will be the largest listed automotive wiring harness player in India with a nationwide manufacturing footprint, the company then said in the stock exchange filing.
“MSWIL will benefit from the continued parentage of MSSL along with an increased focus from Sumitomo Wiring Systems, Japan (SWS) to cater to the fast-growing Indian automotive market,” the company had said. SWS is a Japanese company that makes wiring harnesses for automobiles and their components.