Honda Motor Co., Ltd., Hitachi Automotive Systems, Ltd., Keihin Corporation, Nissin Kogyo Co., Ltd. and SHOWA Corporations | Competition Commission of India’s approval for the global tr

The detail of the deals are: 

Sector: Automobile

Announcement date: 30th October 2019

Name of client: Honda Motor Co., Ltd., Hitachi Automotive Systems, Ltd., Keihin Corporation, Nissin Kogyo Co., Ltd. and SHOWA Corporation

Deal description: Represented Honda Motor Co., Ltd., Hitachi Automotive Systems, Ltd., Keihin Corporation, Nissin Kogyo Co., Ltd. and SHOWA Corporation in securing the Competition Commission of India’s approval for the global transaction involving (i) the amalgamation of Keihin Corporation, Nissin Kogyo Co., Ltd. and SHOWA Corporation into Hitachi Automotive Systems, Ltd., and (ii) the creation of a joint venture between Hitachi Limited and Honda Motor Co., Ltd.     The transaction envisages the creation of a global mega-supplier of automobile and motorcycle systems with a consolidated revenue scale of 1.7 trillion Japanese yen.

Team members: Manas K Chaudhuri (Partner), Sagardeep Rathi (Partner), Pranjal Prateek (Principal Associate), Soham Banerjee (Senior Associate), Ebaad Nawaz Khan (Associate) and Alisha Mehra (Associate)

Role of firm: The Khaitan Competition / Antitrust Team successfully secured the Competition Commission of India’s (“CCI”) unconditional approval for the global merger. Our firm averted a Phase II investigation by strategically navigating complex competition assessments of several horizontal and vertical overlaps in the Indian automotive component and automobile sector. Our early and continued engagement also facilitated the timely approval for the formation of a global supplier of automotive parts built on the basis of the complementary strengths and synergies of the transacting parties.