Bharat Forge’s Big Axle Play: CCI Approves AAM India Takeover, Adds Competitive Safeguards

The Competition Commission of India (CCI) has approved Bharat Forge Limited's acquisition of 100% equity in AAM India Manufacturing Corporation Private Limited (AAMCPL), conditional on voluntary modifications made by the parties. For Bharat Forge, a leading global supplier of forged components and engineering solutions to multiple sectors, including automotive, aerospace, railways and defence, this approval represents a significant milestone.

 

AAMCPL, engaged primarily in the manufacture and sale of axles for commercial vehicles in India, will undertake pre-acquisition restructuring. Its Business Office located in Pune, which supports various IT functions and product engineering, along with its components business division, will be hived-off to affiliates of AAMCPL's direct parent, American Axle and Manufacturing Holdings Inc. Furthermore, e-axle assembly lines of a different subsidiary group will also be transferred to AAMCPL before closing.

 

CCI had sought public comments on the transaction based on identified possible competition issues, but now that it has accepted the voluntary modifications, the transaction will proceed (the detailed order to follow). Bharat Forge is continuing to pursue its strategy of expanding its global position and developing its portfolio. 

 

Source: Press Information Bureau