CCI Clears Tata Electronics’ Acquisition of Pegatron India Stake

Competition Commission of India has approved the acquisition of certain shareholding of Pegatron Technology India Pvt. Ltd. (Pegatron India) by Tata Electronics Pvt. Ltd. (TEPL) and the transfer of TEL Components Pvt. Ltd.(TEL)’s business undertaking to Pegatron India

The Proposed Combination involves the following steps:

1. TEPL proposes to acquire the majority shareholding of Pegatron India in 2 tranches,
2. A wholly owned subsidiary of TEPL (i.e., TEL) proposes to transfer its business undertaking to Pegatron India.

TEPL is a wholly owned subsidiary of Tata Sons Private Limited with expertise in manufacturing high-precision components for large customers. It manufactures smartphone enclosures (i.e., the frame of the phone on which other components/sub-assembles of a smartphone are assembled) for smartphones. TEPL, through its wholly owned subsidiary Tata Electronics Systems Solutions (formerly known as Wistron Infocomm Manufacturing (India) Private Limited), is also engaged in the provision of electronics manufacturing services (EMS) for smartphones.

Further, TEPL, through its wholly owned subsidiary TEL, is setting up a greenfield facility to provide EMS for smartphones.

Pegatron India is a subsidiary of Pegatron Corporation. Pegatron India is engaged in the provision of EMS services for smartphones for a global smartphone brand and exports its products to countries in North America, Asia and Europe in addition to selling in India to the smartphone brand.