Tata Electronics Gets CCI Nod for Wistron India Acquisition

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New Delhi, January 23: The Competition Commission of India (CCI) has approved Tata Electronics' proposed acquisition of Taiwan-based Wistron's operations in India. Wistron Infocomm Manufacturing India operates an iPhone assembly plant near Bengaluru.

CCI Clears the Deal

In October 2022, Wistron Group announced its agreement to sell a plant in Bengaluru to the Tata Group. According to an update on the CCI's website on Tuesday, the regulator has given the green light to the deal between Tata Electronics and Wistron.

Acquisition Details

Tata Electronics intends to acquire 100% of the Wistron Infocomm Manufacturing India equity share capital from SMS Infocomm Singapore Pvt Ltd (SMS Infocomm) and Wistron Hong Kong Ltd (Wistron HK), as per a notice submitted to the regulator. SMS Infocomm and Wistron HK owned 99.99% and 0.01% of the Wistron Infocomm Manufacturing India share capital on a fully diluted basis, respectively.

No Significant Competition Concerns

The proposed transaction does not pose any horizontal overlaps, existing vertical linkages, or complementary linkages between the parties. The notice submitted to the CCI seeking approval for the deal mentioned a potential vertical overlap that would not have any appreciable adverse effect on competition.

Wistron's Sale to Tata Electronics

Wistron's board approved the sale of Wistron InfoComm Manufacturing India to Tata Electronics, part of the Tata Group, for USD 125 million, as announced last year. Apple's iPhones are primarily assembled by Taiwanese manufacturing giants like Pegatron Corp and Foxconn Technology Group.

The CCI's clearance of Tata Electronics' acquisition of Wistron's India operations marks a significant development in the Indian electronics manufacturing sector. The deal is expected to further strengthen Tata Group's presence in the electronics industry and contribute to the growth of India's manufacturing capabilities.