Allowed

Chubb Alba Control Systems Limited, New Delhi, India

CCI31 Jan 2017C-2016/12/465

Case brief

AI extract

What is this about?

The Commission considered a proposal for the transfer of Wipro's Eco Energy business unit to Chubb Alba. Finding no horizontal or vertical overlap and insignificant market presence, it approved the combination under Section 31(1) as not likely to affect competition.

What did the court decide?

The proposed combination of the transfer of Wipro Eco Energy to Chubb Alba is approved under Section 31(1) of the Competition Act, 2002.

Chubb Alba Control Systems Limited, New Delhi, India — Company and Corporate | CCI (2017)

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Fair Competition For Greater Good

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COMPETITION COMMISSION OF INDIA (Combination Registration No. C-2016/12/465)

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31^st January, 2017

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Notice under Section 6 (2) of the Competition Act, 2002 given by Chubb Alba Control Systems Limited

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CORAM:

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Mr. Devender Kumar Sikri Chairperson

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Mr. S.L. Bunker Member

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Mr. Sudhir Mital Member

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Mr. Augustine Peter Member

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Mr. U.C. Nahta Member Mr. G.P. Mittal Member

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Legal Representative: Shardul Amarchand Mangaldas & Co.

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Order under Section 31(1) of the Competition Act, 2002

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On 16^th December, 2016, the Competition Commission of India (hereinafter referred to as the “ Commission ”) received a notice given by Chubb Alba Control Systems Limited (“ Chubb Alba ”), pursuant to a Business Transfer Agreement dated 30^th November, 2016, entered into between Chubb Alba and Wipro Limited (“ Wipro ”). (Hereinafter, Chubb Alba and Wipro are collectively referred to as “Parties” ).

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Page 1 of 3

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COMPETITION COMMISSION OF INDIA

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(Combination Registration No. C-2016/12/465)

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Fair Competition For Greater Good

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The proposed combination, filed under sub-section (2) of Section 6 read with subsection (a) of Section 5 of the Competition Act, 2002 (“ Act ”), relates to business transfer of Eco Energy business unit (“ Target Business ”) of Wipro to Chubb Alba on a slump sale basis.

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Chubb Alba, a public limited company registered in India, is a subsidiary of United Technologies Corporation (“ UTC ”) of USA. It is in the business of providing products and services relating to integrated security systems in India, which inter-alia, include designing, installation, integration and servicing of electronic security equipments. UTC Climate, Controls & Security (“ UTC CCS ”), a business segment of UTC, is engaged in the business of energy management services.

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Wipro, a public limited company registered in India, is engaged inter-alia, in providing information technology solutions and services. Wipro Eco Energy, a business unit of Wipro, is engaged in providing energy management services.

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The Commission observed that the proposed combination pertains to the ‘Building Energy Management System’ (“ BEMS ”). BEMS is a system of computer-aided tools to monitor, control, and optimize a building’s energy needs.

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It is noted that there is no horizontal overlap between the activities of the Parties. However, there is an overlap between the operations of UTC CCS and Wipro Eco Energy, in the segment of energy management services of BEMS.

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The Commission observed that Target Business and UTC CCS have insignificant market presence in the energy management services of BEMS in India for the year 2015-16 and there are other players engaged in provision of energy management services relating to BEMS such as Honeywell, Schneider, Siemens, Johnson Controls Inc. and Trane in India.

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As submitted in the notice, there are no vertical relationships between the activities of the Parties.

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Considering the facts on record, details provided in the notice given under sub-section (2) of Section 6 of the Act and assessment of the proposed combination on the basis of factors stated in sub-section (4) of Section 20 of the Act, the Commission is of the

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Page 2 of 3

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COMPETITION COMMISSION OF INDIA

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(Combination Registration No. C-2016/12/465)

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Fair Competition For Greater Good

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opinion that the proposed combination is not likely to have any appreciable adverse effect on competition in India and therefore, the Commission, hereby, approves the same under sub-section (1) of Section 31 of the Act.

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This order shall stand revoked if, at any time, the information provided by the Parties is found to be incorrect.

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The information provided by the Parties shall be treated as confidential in terms of and subject to provisions of Section 57 of the Act.

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The Secretary is directed to communicate to the Parties accordingly.

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Chubb Alba Control Systems Limited, New Delhi, India

Case brief

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Chubb Alba Control Systems Limited, New Delhi, India

Case brief

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