The competition watchdog, Competition Commission of India (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 here.
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 AHIL and APIL.
Given the foregoing, the proposed combination is not likely to have an appreciable adverse effect on competition in India, the order added.
On October 12, both the companies had jointly moved the CCI to seek approval for the amalgamation under Sec. 6 of the Competition Act, 2002, after getting nod of boards of directors.
Share swap ratio
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 had cleared the Wockhardt, Danone merger, the UTV, Disney merger and the Reliance Industrial Infrastructure — Bharti AXA Life takeover and Bombay Burmah Trading Co-Aica Kogyo takeover.
