Kubota Corporation
Case brief
What is this about?
The Competition Commission of India approved a combination involving Kubota Corporation acquiring shares in Escorts Limited and altering joint venture holdings in KAI. The Commission found no appreciable adverse effect on competition based on low combined market shares.
What did the court decide?
Approval of Step-1 (Kubota subscribing to Escorts shares) and Step-2 (Kubota acquiring KAI shares and Escorts acquiring KAI shares).
What the court decided
A compact analysis
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
COMPETITION COMMISSION OF INDIA (Combination Registration No. C-2020/06/750)
10th July, 2020
Notice under Section 6 (2) of the Competition Act, 2002 filed by Kubota Corporation
CORAM:
Mr. Ashok Kumar Gupta Chairperson Ms. Sangeeta Verma Member
Mr. Bhagwant Singh Bishnoi Member
Order under Section 31(1) of the Competition Act, 2002
- On 11th June, 2020, Competition Commission of India (“ Commission ”) received a notice under Section 6(2) of the Competition Act, 2002 (“ Act ”), filed by Kubota Corporation (“ Kubota/Acquirer ”). The notice has been filed pursuant to the (i) Shareholders’ Agreement (“ SHA ”) dated 20th March, 2020 between Kubota, Escorts Limited (“ Escorts/Target ”), Escorts Benefit and Welfare Trust and Specified Promoters; (ii) Share Subscription Agreement (“ SSA ”) dated 20th March, 2020 between Kubota, Escorts and Specified Promoters and (iii) Share Purchase Agreement (“ SPA ”) dated 20th March, 2020 between Escorts, Kubota and Kubota Agricultural Machinery India Private Limited (“ KAI ”). [Hereinafter, Kubota and Escorts are together referred to as “ Parties ”]
Issues for consideration
2 issues framed by the court
Whether the proposed acquisition by Kubota of Escorts and changes in KAI constitute an appreciable adverse effect on competition.
Whether the market share of the parties indicates a likelihood of competition concerns in tractor, combine harvester, and diesel engine segments.
Parties & counsel
- petitioner
Competition Commission of India
- applicant
Kubota Corporation
Coram
Ashok Kumar Gupta
Case details
As recorded by the court registry
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