Jurisdiction - India
News
India – CCI Approves The Restructuring Of Wipro GE’s Distribution Business.

18  March, 2015

 


On January 12, 2015, CCI approved the restructuring of the distribution business of Wipro GE Healthcare Private Limited (‘Wipro GE’).

Wipro GE, a joint venture between the General Electric Company and Wipro Enterprises Limited, is inter alia engaged in the manufacture of medical equipment and solutions.
The proposed transaction envisaged a series of inter-connected steps involving, (a) the formation of a new company (‘NewCo’) by Mr. S. Ganeshprasad and Mr. Kiran Thadimarri; (b) the subscription of shares in the NewCo by Wipro GE, Mr. S. Ganeshprasad, Mr. Kiran Thadimarri and Mr. R.R Balaji in agreed percentages; (c) the entering into of a dealership agreement regarding the distribution of certain products of Wipro GE; and (d) the transfer of certain assets of Wipro GE including unexecuted work orders to the NewCo. Mr. S. Ganeshprasad, Mr. Kiran Thadimarri and Mr. R.R Balaji are employees of Wipro GE, engaged in its distribution services business.

CCI noted that the proposed transaction related to the market for distribution services of medical equipment and devices in India. In the course of its review, CCI observed the following – (a) since the NewCo was yet to be incorporated and did not have any business operations, there were no horizontal overlaps or vertical relationships between Wipro GE and the NewCo; (b) the existing dealers of Wipro GE would have an option to continue to deal with the productswhich would be distributed by the NewCo expect that they would be required to interface with the NewCo instead of Wipro GE.; and (c) Wipro GE would retain the right to sell directly the products which would be distributed by the NewCo. Hence, CCI appreciated the fact that the proposed transaction was merely a restricting of the existing distribution business of Wipro GE and was unlikely to case any AAEC in the market for distribution services of medical equipment and devices in India.

In light of the above, CCI approved the transaction.

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

Comments are closed.