CCI Clears Bharti Group–Indigo Cove Acquisition of 49% Stake in Haier India

Bharti Group–Indigo Cove Acquisition

India: India’s fair trade regulator, the Competition Commission of India (CCI), on Wednesday approved Bharti Group and Indigo Cove Investments’ proposed acquisition of a 49% stake in white goods manufacturer Haier Appliances (India) Pvt Ltd. The transaction, valued at around USD 2 billion, was cleared under the green channel route, which allows automatic approval for deals that do not raise competition concerns. According to a notice submitted to the CCI, the proposed transaction involves the acquisition of approximately 49% equity shareholding in Haier by Indigo Cove Investments BV and Bharti Neo Ventures Ltd (BNVL) on a fully diluted basis, through a combination of primary subscription and secondary purchase of shares.

Haier Appliances (India) Pvt Ltd is engaged in the manufacturing of refrigerators, air-conditioners, and other household appliances. Indigo Cove Investments BV is an investment holding company incorporated in the Netherlands, while BNVL is an indirect wholly-owned subsidiary of the Bharti Group and does not have business operations in India or globally. The notice stated that there are no horizontal overlaps or vertical or complementary links between the activities of the parties and their respective groups in India, and therefore the transaction will not have any adverse effect on competition. Under the green channel mechanism, such transactions are deemed approved upon notification to the CCI.

Source: ET