CCI Approves Mitsubishi’s Acquisition 22% Stake in TVS

On September 6, 2019, the CCI approved Mitsubishi Corporation’s (‘Mitsubishi’) acquisition of approximately 22% of the total equity share capital of TVS Automobile Solutions Private Limited (‘TVS’).[1] Mitsubishi already held 3.26% shareholding in TVS prior to the combination. Mitsubishi sought to increase its shareholding to approximately 25% by means of share subscription along with secondary purchase from some existing shareholders.

Mitsubishi is a global entity operating in various industries including automotive and mobility, natural gas, industrial materials, petroleum & chemicals, mineral resources, industrial infrastructure, food industry, consumer industry, power solution, and urban development. TVS is in the business of distribution and sale of automobile spare parts, multi brand vehicle service, trading and distribution of automobile accessories, 24×7 emergency roadside assistance (‘RSA’) service, non-life/general insurance intermediary services, sale of tyre repair product supplies, etc.

The CCI noted that neither Mitsubishi nor TVS were engaged in the production/provision of any identical or similar goods or services in India. CCI also noted that Mitsubishi had equity stake in Isuzu Motors India (‘IMI’) which availed RSA service from TVS. However, IMI vehicles which were enrolled with and attended by TVS for RSA services were insignificant compared to the total number of vehicles enrolled with and attended by TVS. Further, the market presence of IMI in the supply of passenger vehicles in India was not considered significant. In light of the above, CCI opined that the combination was not likely to incentivize the parties to engage in any anti-competitive conduct and was not likely to raise any AAEC. Accordingly, CCI granted its approval to the combination.

[1] Combination Registration No. C-2019/07/675.