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India – CCI Approves JV Between Mitsubishi-Hitachi Metal Machinery Inc. And Siemens Aktiengesellschaft.

13 October, 2014

 


On August 14, 2014, CCI approved a joint venture (‘JV’) focusing on metal plant building solutions and related services between Mitsubishi-Hitachi Metals Machinery, Inc. (‘MHMM’) and Siemens Aktiengesellschaft (‘Siemens’). MHMM would hold 51% of the issued share capital of the business while Siemens would hold the remaining 49%. Both MHMM and Siemens will contribute their metal plant building business to the proposed JV. 

CCI examined the market of metal plant building in the wider segments of mechanical and electrical plant building as well as in the narrower market in terms of processes comprising the mechanical and electrical plant building segments. CCI considered that following factors of the proposed transaction: (i) the limited direct overlaps between the parties, (ii) the fact that the parties operate generally at different levels of production (Siemens focuses on the upstream part of the metallurgical production chain and, in a limited manner, in the downstream continuous casting stage, while MHMM’s focus is on the downstream metallurgical production chain), (iii) the presence of sophisticated suppliers who generally supply solutions for the entire steel production range, and (iv) the fact that the parties are not close competitors in the overall market.

 
The CCI approved the transaction as it as it did not feel it would result in any appreciable adverse effect on competition in India.

 

AZB

 

For further information, please contact:

 

Zia Mody, AZB & Partners
zia.mody@azbpartners.com

 

Abhijit Joshi, AZB & Partners 
abhijit.joshi@azbpartners.com

Shuva Mandal, AZB & Partners 
shuva.mandal@azbpartners.com

 

Samir Gandhi, AZB & Partners
samir.gandhi@azbpartners.com

Percy Billimoria, AZB & Partners 
percy.billimoria@azbpartners.com

 

Aditya Bhat, AZB & Partners 
aditya.bhat@azbpartners.com

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