CCI Approves Honda Motor’s Acquisition of Additional 21% Stake in Astemo
New Delhi, June 23 (TNT): The Competition Commission of India (CCI) has approved the proposed acquisition of a 21 per cent voting interest in Astemo Ltd. by Honda Motor Co. Ltd.
The proposed transaction involves Honda Motor Co. Ltd. acquiring the stake in Astemo from Hitachi Ltd., further increasing its ownership in the Japanese automotive components company.
Honda Motor Co. Ltd., the flagship entity of the Honda Group, is engaged in the manufacture and sale of automobiles, two-wheelers and power products, besides automotive component manufacturing and research and development activities.
In India, the company has a significant presence across the automobile and two-wheeler sectors.
Astemo Ltd., incorporated in Japan and formed through a merger and integration process completed in 2021, is currently jointly controlled by Honda Motor Co. Ltd., Hitachi Ltd. and JICC-01 Investment Business Limited Partnership.
In India, Astemo is engaged in the manufacture and sale of automotive components for automobiles and two-wheelers, sale of components for power products, and related research and development activities.
The CCI, in a brief statement issued on Tuesday, said it had approved the proposed combination under the provisions of the Competition Act.
The Commission noted that a detailed order outlining the rationale and assessment of the transaction would be issued separately.
The approval paves the way for Honda Motor to strengthen its shareholding and strategic position in Astemo, a key player in the automotive components sector.
TNT KS
