CCI approves JSW's acquisition of up to 38% stake in MG Motor India

CCI approves JSW’s acquisition of up to 38% stake in MG Motor India

The Competition Commission of India (CCI) has approved the JSW Group’s plan to acquire a maximum of 38% stake in MG Motor India. The CCI stated that the acquirer, a newly established company, is a wholly-owned subsidiary of JSW International Trade Corp Pte. Limited and is part of the JSW Group.

The Competition Commission of India (CCI) has approved JSW Group’s proposed acquisition of up to a 38% stake in MG Motor India. JSW Group is supported by Sajjan Jindal.

As of right now, the Acquirer is a freshly created company with no active business ventures. It is a fully owned subsidiary of JSW Group and JSW International Tradecorp Pte Limited, according to the CCI.

“The Target is an Indian corporation that manufactures original equipment for automobiles and provides after-sale services. Target’s primary business is producing and selling passenger automobiles, including electric vehicles, under the ‘MG’ brand, the statement continued.

The JSW Group and China’s SAIC Motor have signed a deal to buy a 35% share in MG Motor India, an Indian affiliate, so that the two companies can jointly manage the nation’s auto activities, according to an ET story from November 2023.

JSW Group will pay an undisclosed sum to purchase a 35% ownership in SAIC’s Indian affiliate, MG Motor India, by the terms of their agreement. The Chinese automaker will keep providing cutting-edge goods and technology to the joint venture to provide mobility options for Indian consumers.

The purchase coincides with heightened geopolitical tensions and intensified Indian government scrutiny of Chinese assets. JSW Group’s purchase of the shareholding will allow the company to

of Hector and Astor to grow their business in the neighborhood and provide the Indian conglomerate a foothold in the rapidly changing Indian electric vehicle market.

At MG Motor’s London headquarters, Parth Jindal of JSW Group and SAIC President Wang Xiaoqiu signed the shareholder agreement and the share purchase and subscription agreement.

“Partners shall work closely to bring in the best of innovation, in creating greener and smarter mobility products and services for our consumers, seizing market opportunities, continuously expanding the brand influence and market share of our products, and achieving greater success for MG in India,” stated Wang Xiaoqiu, President of SAIC Motor. Concerning the expanding Indian automotive market

” Green mobility solutions, our strategic collaboration with SAIC Motor aims to grow and transform the MG Motor operations in India,” said Parth Jindal. A cutting-edge range of technologically enabled futuristic car products, such as the next generation of intelligently linked internal combustion engine (ICE) and non-electric vehicle (NEV) vehicles, are made possible by the joint venture. The JV’s focus on larger localization projects will create synergies through economies of scale that are financially accretive while providing Indian consumers with the greatest possible customer experience.

The two had stated that developing the ecosystem for electric vehicles and assuming a leadership role in it will be major goals of the joint venture. According to SAIC Motor and JSW Group, their goal is to establish strategic synergies through the pooling of resources in the automotive and innovative technology sectors. The joint venture also intends to launch several new projects, such as expanding production capacity, launching a wider range of vehicles with an emphasis on green mobility, enhancing local sourcing, and upgrading the infrastructure for charging.

MG Motor India said in May 2023 that it is considering transferring the bulk of its shares to Indian firms to finance its goals to expand throughout the nation over the following five years. MG Motor India has earmarked Rs 5000 crore for investment as part of its growth plan. The funds would be used, among other things, to create a second manufacturing site in Gujarat. The new plant will more than triple the company’s installed capacity, which is currently 120,000 units, to a total of 300,000 units.

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