Competition Commission of India (CCI) Approves Strategic Shareholding Moves in Hitachi Astemo Ltd.
New Delhi, India – In a significant development in the automotive industry, the Competition Commission of India (CCI) has given the green light to a series of strategic shareholding acquisitions involving Hitachi Astemo Ltd. (HAL), JICC-01 Limited Partnership, Honda Motor Co. Ltd. (HMCL), and Hitachi Astemo Electric Motor Systems (HAEMS).
Proposed Combination Details:
- JICC-01 Limited Partnership’s Stake in HAL: JICC-01 Limited Partnership, a Japanese limited partnership managed by JICC G.K. (a wholly-owned subsidiary of JIC Capital, Ltd.), will acquire 20% of voting rights in HAL, along with certain control rights, board representation, and other privileges.
- HMCL Expands Stake in HAL: HMCL, a prominent Japanese corporation, will increase its existing stake in HAL by acquiring an additional 6.6% of voting rights, resulting in HMCL holding 40% of the voting rights in HAL.
- HAL’s Acquisition of HAEMS: HAL will acquire a substantial 49% shareholding in HAEMS, effectively making it the sole owner of HAEMS, which was previously known as Hitachi Automotive Electric Motor Systems.
This comprehensive combination, collectively referred to as the “Proposed Combination,” marks a significant shift in the shareholding landscape of HAL and HAEMS.
Key Players:
- JICC-01 Limited Partnership: This limited partnership is managed by JICC G.K., a wholly-owned subsidiary of JIC Capital, Ltd. JIC Capital, in turn, is a wholly-owned subsidiary of Japan Investment Corporation (JIC), a sovereign wealth fund established by the Government of Japan in 2018. JIC’s mission is to foster a virtuous cycle of risk capital to support emerging industries in Japan.
- Honda Motor Co. Ltd. (HMCL): HMCL is a Japanese limited liability, joint-stock corporation incorporated in Japan. In India, HMCL is primarily involved in the manufacturing and sale of automobiles, two-wheelers, power products, auto parts, and related research and development activities.
- Hitachi Astemo Ltd. (HAL): HAL was formed in 2021 through the merger of Hitachi Automotive Systems Ltd., Keihin Corporation, Showa Corporation, and Nissin Kogyo Co., Ltd. In India, HAL is a key player in the production of auto parts for automobiles and two-wheeled motor vehicles, as well as engaging in related research and development efforts.
- Hitachi Astemo Electric Motor Systems (HAEMS): HAEMS, formerly known as Hitachi Automotive Electric Motor Systems, is a Japanese company specializing in the development, manufacture, and sales of motors for electric vehicles.
These developments in the automotive industry are expected to have far-reaching implications for the future of HAL and HAEMS, as well as the broader automotive sector in India and beyond.
