New Delhi: Fair trade regulator on Tuesday said it has approved a combination proposal filed jointly by Keihin Corporation, Nissin Kogyo Co. Ltd., Showa Corporation and Hitachi Automotive Systems Ltd to form a joint venture between Honda Motor Co Ltd (HAMCL) and Hitachi Ltd.
The proposed combination pertains to Keihin Corporation, Nissin Kogyo, Showa Corporation and Hitachi Automotive Systems (HIAMS) forming a joint venture between HAMCL and Hitachi Ltd, according to a press release.
The transaction entails HAMCL's acquisition of additional shares to convert its affiliates Keihin Corporation, Nissin Kogyo and Showa Corporation as its wholly-owned subsidiaries, following which the entities will amalgamate into HIAMS to form the integrated company, as per a combination notice.
HIAMS is a wholly-owned subsidiary of Hitachi Ltd.
By way of the proposed combination, HAMCL and Hitachi will jointly control the integrated company, the notice filed with regulator said.
Through the proposed transactions, the entities will integrate their complementary strengths to provide globally competitive solutions to the automotive and two-wheeled vehicle industry, it said. The entities will combine resources and research efforts to create social, economic and environmental value, improve the safety and comfort of mobility, and advance the automotive and motorcycle industry towards the next generation, it added.
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In India, HAMCL is primarily engaged in the business of automobiles and two-wheeled motor vehicles, while HIAMS, acting through its subsidiaries, is engaged in the manufacture, marketing, sale and service of automotive components.
In a tweet, the Competition Commission of India (CCI) said it "approves proposed combination filed jointly by Keihin Corporation, Nissin Kogyo Co., Ltd., Showa Corporation and Hitachi Automotive Systems, Ltd".
(PTI Report)
