CCI clears Schneider Electric India, MacRitchie’s buyout of L&T arm

Today's Latest

Microsoft’s venture fund to empower women techies with $6mn

New Delhi, Oct 17 (IANS) In a bid to empower women entrepreneurs, Microsofts corporate venture fund M12 on Thursday partnered...

Acting has enabled me to do different things: Gul Panag

Mumbai, Oct 17 (IANS) Former beauty queen, politician and actress Gul Panag, who will soon be seen in the film...

Surveillance cameras will be largest market for 5G IoT solutions

London, Oct 17 (IANS) Outdoor surveillance cameras will be the largest market for 5G Internet of Things (IoT) solutions globally...

Popular Today

Italy to work for unity on Turkey, Brexit at EU summit

Rome, Oct 16 (IANS/AKI) Italy will seek European unity on issues including Turkey's current military offensive in northern Syria and...

Ganguly will speak to selectors about MS Dhoni on Oct 24

Kolkata, Oct 16 (IANS) Board of Control for Cricket in India (BCCI) President-elect and former India captain Sourav Ganguly on...

Only Modi govt dared to abrogate Article 370: Amit Shah

Faridabad/Gurugram, Oct 16 (IANS) Union Home Minister Amit Shah on Wednesday said it was only the Prime Minister Narendra Modi-led...
India Updates
India Updates is an independent news & Information website. Follow us for regular updates on News and Information.

CCI clears Schneider Electric India, MacRitchie's buyout of L&T armThe Competition Commission of India (CCI) on Thursday approved the acquisition of Larsen & Toubro’s (L&T) electric and automation (E&A) business by Schneider Electric India and MacRitchie Investments.

The Ministry of Corporate Affairs (MCA) in a statement, however, noted that the acquisition could lead to lesser competition in the market. Therefore the CII has ordered the acquirers to reserve a part of L&T’s installed capacity to offer white labelling services to third party competitors.

- Advertisement -

The approval is subject to modifications that are aimed at eliminating the likely anti-competitive effects of the proposed acquisition.

“The Commission found that Schneider and L&T are the first and second leading players in terms of sales and distribution reach in the low voltage (LV) switchgear industry in India. Their consolidation would inter alia lock a large part of the LV switchgear distributors and other downstream players with the combined entity, thereby making it difficult for new players to enter the market,” said the MCA statement.

“Thus, the Commission was of the view that the acquisition of E&A business of L&T would reduce competition and confer the combined entity the ability to increase price.”

The facility to manufacture products for third parties would be “available in respect of five high market share LV switchgears, which are generally used together in LV panels”.

Under the white labelling services, the third party competitors can take L&T products on a reasonable price for selling under their own brand, for a period of five years, as per the official statement. Subsequently, these competitors can get access to the technology of white-labelled products to manufacture them, for the next five years.

“To open up their distribution network to competitors, Schneider would revise its commercial policies and remove de facto exclusivity in distribution agreements. Further, Schneider would not discontinue L&T products and not increase their average selling price, for a period of five years,” it said.

MCA said that the remedies ordered by the CCI were expected to allow business expansion of competitors in the five white-labelled products to thereby leverage their brand position in the overall LV switchgear business.

IANS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

Hindu, Muslim sides spar as Ayodhya case hearing set to end

New Delhi, Oct 15 (IANS) The lawyers for the Hindu and Muslim sides got into a duel on the 39th...

Microsoft’s venture fund to empower women techies with $6mn

New Delhi, Oct 17 (IANS) In a bid to empower women entrepreneurs, Microsofts corporate venture fund M12 on Thursday partnered with Mayfield and Pivotal Ventures...

Acting has enabled me to do different things: Gul Panag

Mumbai, Oct 17 (IANS) Former beauty queen, politician and actress Gul Panag, who will soon be seen in the film "Bypass Road", says that though...

Surveillance cameras will be largest market for 5G IoT solutions

London, Oct 17 (IANS) Outdoor surveillance cameras will be the largest market for 5G Internet of Things (IoT) solutions globally in the next three years,...

Ola launched its self-drive cab rental service in Bengaluru

Bengaluru, Oct 17 (IANS) There is one more reason not to own a car now as ride-hailing major Ola on Thursday launched its self-drive cab...

More Articles Like This