Jtekt Corporation, Japan
Case brief
What is this about?
The Competition Commission of India approved a proposed combination involving the acquisition of a 25.12% stake in Sona Koyo Steering Systems Limited by JTEKT Corporation. The Commission found no appreciable adverse effect on competition, noting lack of horizontal overlaps and insignificant market share in vertical relationships.
What did the court decide?
The Proposed Combination is approved under Section 31(1) of the Competition Act, 2002 on the grounds that it is not likely to have an appreciable adverse effect on competition.
What the court decided
COMPETITION COMMISSION OF INDIA (Combination Registration No. C-2017/02/486)
Fair Competition For Greater Good
05.05.2017
Notice under Section 6 (2) of the Competition Act, 2002 given by JTEKT Corporation
CORAM:
Mr. Devender Kumar Sikri Chairperson Mr. Sudhir Mital Member Mr. Augustine Peter Member Mr. U.C. Nahta Member Mr. G. P. Mittal Member
Legal Representatives: Jupiter Law Partners
Order under Section 31(1) of the Competition Act, 2002
- On 21.02.2017, the Competition Commission of India (“ Commission ”) received a notice under sub-section (2) of Section 6 of the Competition Act, 2002 (“ Act ”) given by JTEKT Corporation (hereinafter, “ JTEKT ” or the “ Acquirer ”). The notice has been given pursuant to execution of Share Purchase Agreement (“ SPA ”) dated 01.02.2017 entered into between the Acquirer, Sona Autocomp Holding Limited ( “ Seller ”), Rani Kapur and Sunjay Kapur (collectively, “ Confirming Parties ”) for acquisition of 25.12 percent stake in Sona Koyo Steering Systems Limited (“ SKSSL ” or “ Target ”) (“ Proposed Combination ”). The Acquirer is also required to make an open offer to acquire additional 26 percent shares of the Target from the public shareholders, as triggered under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations. In view of the same, the Acquirer made open offer vide detailed public statement dated
Issues for consideration
3 issues framed by the court
Whether the Proposed Combination between JTEKT Corporation and Sona Autocomp Holding Limited raises significant competition concerns.
Whether the transfer of shares in SSDCL from the Target to the Seller constitutes a notifiable combination.
Whether the vertical relationship between KBIN and the Target raises any appreciable adverse effect on competition.
Parties & counsel
- petitioner
JTEKT Corporation
- respondent
Sona Autocomp Holding Limited
- respondent
Rani Kapur and Sunjay Kapur
Coram
Case details
As recorded by the court registry
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