CCI Approves JSW Ventures Singapore’s Acquisition of up to 38% Stake in MG Motor India
The Competition Commission of India (CCI) has granted approval for JSW Ventures Singapore Pte Ltd, a wholly-owned subsidiary of JSW International Tradecorp Pte Ltd and part of the JSW Group, to acquire approximately 38% of the share capital of MG Motor Pvt Ltd. This signifies that CCI has reviewed and cleared the acquisition transaction, allowing JSW Ventures to acquire a significant stake in MG Motor India.
The Competition Commission of India (CCI) has given approval for the acquisition by JSW Ventures Singapore Pte. Limited, a newly incorporated entity and wholly-owned subsidiary of JSW International Tradecorp Pte.
Limited, for up to approximately 38% of the share capital of MG Motor India Private Limited. The statement from the competition watchdog clarifies that the Acquirer, JSW Ventures Singapore, is currently not involved in any activities and is part of the JSW Group.
MG Motor India, a company incorporated in India, is primarily involved in the manufacturing and sales of passenger cars and electric vehicles under the ‘MG’ brand, as confirmed by the Competition Commission of India (CCI). The CCI further mentioned that a detailed order regarding this approval will be issued subsequently.
Notably, in November of the previous year, a strategic joint venture was announced between China’s SAIC Motor and JSW Group. As part of this joint venture, JSW Group acquired a 35% stake in MG Motor India. It’s important to highlight that MG Motor UK is owned by SAIC Motor UK.
The strategic joint venture between China’s SAIC Motor and JSW Group, signed in November, aimed at fostering the growth and transformation of MG Motor in India. The collaboration sought to leverage resources in automobiles and new technology, with a focus on local sourcing, improvement of charging infrastructure, expansion of production capacity, and the introduction of a broader range of vehicles, prioritizing green mobility.
In response to the increased scrutiny of Chinese investments by the Indian government, SAIC Motor announced plans to reduce its ownership stake in MG Motor India, allowing domestic entities to hold a majority stake in the joint venture. This move reflects an adjustment in ownership structure to align with regulatory considerations.
The joint venture between SAIC Motor and JSW Group is not only focused on the growth and transformation of MG Motor in India but also aims to play a leadership role in developing the electric vehicle (EV) ecosystem.
The partnership seeks to leverage SAIC Motor’s considerable automotive expertise along with JSW Group’s extensive presence across Indian business-to-business (B2B) and business-to-consumer (B2C) sectors. The overarching goal is to establish a robust supply chain and create a sustainable automotive ecosystem in India, particularly emphasizing the electric vehicle segment.
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