As per the agreement, JSW Group will acquire 35 % stake in SAIC's Indian subsidiary MG Motor India for an undisclosed amount.
24 Jan 2024 | 4489 Views | By Autocar Professional Bureau
The Competition Commission of India has given its go-ahead for JSW's proposed acquisition of up to a 38% stake in MG Motor India.
"The Acquirer is a newly incorporated entity and is not engaged in any activities as of date. It is a wholly-owned subsidiary of JSW International Tradecorp ...
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The Competition Commission of India has given its go-ahead for JSW's proposed acquisition of up to a 38% stake in MG Motor India.
"The Acquirer is a newly incorporated entity and is not engaged in any activities as of date. It is a wholly-owned subsidiary of JSW International Tradecorp Pte. Limited and belongs to JSW Group," the CCI stated.
"The Target is a company incorporated in India, engaged in the automobile original equipment manufacturing business and after sale services. The Target is primarily engaged in the manufacture and sale of passenger cars (including electronic vehicles) under Target's brand 'MG"', it further said.
Autocar Professional had exclusively reported that the company is in talks with JSW Group for dilution of stake on April 24, 2023.
According to the agreement reached between the two companies, JSW Group will acquire a 35% stake in SAIC's Indian subsidiary MG Motor India for an undisclosed sum.
The Chinese auto major will continue supporting the joint venture with advanced technology and products to deliver mobility solutions to the Indian consumer.
The shareholder agreement and the share purchase and subscription agreement were signed between SAIC President Wang Xiaoqiu and JSW Group's Parth Jindal at MG Motor's office in London in November last year.
Wang Xiaoqiu, President, SAIC Motor, said, "In the growing Indian automotive market, both partners shall work closely to bring in the best of innovation, in creating greener and smarter mobility products and services for our consumers, seizing market opportunities, continuously expanding the brand influence and market share of our products, and achieving greater success for MG in India."
Parth Jindal had said, "Our strategic collaboration with SAIC Motor aims to grow and transform the MG Motor operations in India with a focus on green mobility solutions. The joint venture paves the way for bringing world-class technology-enabled futuristics suite of automobile products including the new generation of intelligent connected NEVs and ICE vehicles."
"The JV's focus on broader localisation initiatives will yield financially accretive synergies through economies of scale while providing the highest level of customer service to the Indian consumer."
One of the key focus areas of the joint venture, the duo had said, will be to pursue the development of the electric vehicle ecosystem and to take a leadership position in this space. SAIC Motor and JSW Group said they aim to create strategic synergies by bringing together resources in the field of automobiles and new technology.
The joint venture also plans to undertake multiple new initiatives including augmenting local sourcing, improving charging infrastructure, expansion of production capacity, and introducing a broader range of vehicles with a focus on green mobility.
MG Motor entered India in September 2017 by acquiring General Motors India’s Halol plant. It has been manufacturing vehicles over the past four to five years but since the factory is over a decade-and-a-half old, there is a limitation to the extent to which the brand can produce. Hence, it has been actively exploring a second plant in India for over a couple of years now.