On November 22, 2018, CCI approved the proposed combination of DENSO Corporation (‘DENSO’) to increase its shareholding in Subros Limited (‘Subros’) from 13% to 20%, by way of a share subscription.[1] The transaction would also give DENSO the right to nominate one more director on the board of directors of Subros.

In India, DENSO is engaged in the manufacture and commercial sale of automotive air-conditioning systems. Subros is an integrated manufacturing unit in India for automotive air conditioning systems and engine cooling system. It also manufacturers, inter alia, compressors, condensers and heat exchangers i.e. all components of an air conditioning system. Subros is a joint venture between Suzuki Motor Corporation, DENSO and the Suri family.

CCI noted that DENSO already held 13% shareholding in Subros along with the right to nominate one director on the board of directors of Subros. Therefore, the proposed increase in shareholding by 7% and the right to nominate one more director was not likely to have any appreciable adverse effect on competition in India. Accordingly, the combination was approved by CCI.

[1] Combination Registration No. C-2018/11/614.