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Competition watchdog CCI has cleared the amalgamation of Alstom Holdings India Ltd (AHIL) and its subsidiary Alstom Projects India Ltd (APIL).
“It is observed that both AHIL and APIL are engaged in different business activities. It is also observed that both AHIL and APIL are part of the Alstom group of companies, the ultimate holding of which is with Alstom Holdings,” the Competition Commission of India (CCI) said in an order.
“Further, the amalgamated company APIL would continue to be under the same management subsequent to the implementation of the scheme of amalgamation approved by the board of directors of both AHIL and APIL. Given the foregoing, the proposed combination is not likely to have an appreciable adverse effect on competition in India,” it added.
On October 12, both the companies had jointly moved CCI to seek approval for the amalgamation under Section 6 of the Competition Act, 2002 after getting nod of board of directors.
The board of the power project services provider has approved the share swap ratio of 10:41, that is, 10 shares of APIL for every 41 shares of AHIL.
This is the fifth combination cleared by the CCI after Sections 5 and 6 of the Competition Act came into force in June 2011. The two sections give CCI the powers to vet high-voltage mergers and acquisitions.
Earlier, the CCI cleared the mergers of Wockhardt, Danone and that of UTV, Disney. It also approved Reliance Industrial Infrastructure — Bharti AXA Life takeover and Bombay Burmah Trading Co—Aica Kogyo takeover.
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