CCI approves reorganisation of Motherson Group
27 May 2021
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The Competition Commission of India (CCI) on Tuesday gave approval to a proposal pertaining to intra-group reorganisation of the Motherson Group under the green channel route.
CCI on Thursday said it received a notice under Green Channel filed by Motherson Sumi Systems Limited (MSSL), Samvardhana Motherson International Limited (SAMIL), Sumitomo Wiring Systems Limited (SWS) relating to an intra-group reorganisation of the Motherson Group and is deemed approved.
Green channel is an automatic approval system, whereby a combination is deemed to have been approved by the CCI upon receiving the filing of the notice for the combination by the parties concerned.
Under the proposed combination, MSSL’s entire domestic wiring harness undertaking (DWH Undertaking) will be demerged into a newly incorporated wholly-owned subsidiary of MSSL, ie, Motherson Sumi Wiring India Limited (MSWIL); and SAMIL will be amalgamated by absorption into MSSL, being the resultant company. Subsequently, MSSL will be renamed as Samvardhana Motherson International Limited (New SAMIL).
MSSL is the flagship company of the Motherson Group and is a leading automotive component manufacturer for original equipment manufacturers. MSSL is in the business of manufacturing automotive components (such as wiring harness), vision systems, moulded and polymer products, etc.
SAMIL is the largest shareholder of MSSL. SAMIL provides operational, strategic, and management support to all Motherson Group companies. SAMIL is inter alia engaged in the business of manufacturing automotive components and ancillaries, including automotive lighting systems, extruded and injection moulding tools and components, air intake manifolds etc.
SWS (indirect acquirer) is a Japanese company. It manufactures and sells wiring harnesses for automobiles and their components, electric wires, and cables for automobiles, electronic components for automobiles as well as components for electric vehicles.
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