Kubota Corporation
Case brief
What is this about?
The Competition Commission of India evaluated Kubota Corporation's proposed acquisition of an additional 6.49% shareholding in Escorts Limited, along with an open offer to public shareholders. After assessing horizontal and vertical overlaps across tractor and engine segments, the Commission found no appreciable adverse effect on competition and approved the combination.
What did the court decide?
Approval of the Proposed Combination under Section 31(1) of the Competition Act, 2002.
What the court decided
COMPETITION COMMISSION OF INDIA
(Combination Registration No. C-2021/12/890)
1st February 2022
Notice under Section 6(2) of the Competition Act, 2002 given 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 14th December 2021, the Competition Commission of India (‘ Commission ’) received a notice under Section 6(2) of the Competition Act, 2002 (‘ Act ’), given by Kubota Corporation (‘ Kubota ’ / ‘ Acquirer ’). The notice was filed pursuant to the execution of (i) Shareholders’ Agreement (‘ SHA ’) between Kubota, Escorts Limited (‘ Escorts ’/‘ Target ’), Escorts Benefit and Welfare Trust (‘ Escorts Trust ’) and Specified Promoters; and (ii) Share Subscription Agreement (‘ SSA ’) between Kubota, Escorts, Escorts Trust and Specified Promoters, both dated 18th November 2021 (Hereinafter, Kubota and Escorts are together referred to as ‘ Parties ’).
Issues for consideration
3 issues framed by the court
Whether the proposed acquisition of additional equity shares in Escorts by Kubota Corporation is likely to have an appreciable adverse effect on competition in India.
Whether horizontal, vertical, or complementary overlaps in the tractor, combine harvester, and diesel engine segments raise competition concerns.
Whether objections to the proposed combination should be raised under the Competition Act, 2002.
Parties & counsel
- applicant
Kubota Corporation
- respondent
Escorts Limited
- respondent
Escorts Benefit and Welfare Trust
Coram
Case details
As recorded by the court registry
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