CCI approves merger of Siemens' subsidiaries
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The Competition Commission of India (CCI) has approved the proposed merger of Siemens Power Engineering (SPEL) with electronics major Siemens Ltd (SL).
"The Commission is of the opinion that the proposed combination (of SPEL with SL) is not likely to have any appreciable adverse effect on competition... The Commission, therefore, hereby approves the combination," CCI said in an order.
The order noted that even after the amalgamation, the ultimate control over the business activities carried on by SPEL and SL would continue to remain with German parent Siemens AG and, therefore, 'the proposed combination is not likely to have any adverse competition concern'.
CCI further said that it has been stated in the notice that after the amalgamation, SPEL would be structured as a unit within SL and would continue to work in the same or similar business.
SL is engaged in a wide range of business, from turbines to medical equipments,hearing aids to power plants, automation controls to lighting equipments, transportation.
Last month, Siemens had said it has received its board's approval for the proposed amalgamation. Under the share swap ratio for the proposed scheme of amalgamation, the shareholders will be offered 6 equity shares of the face value of Rs 2 per piece of Siemens Ltd for every 13 equity shares of the face value of Rs 10 per piece of Siemens Power Engineering, Siemens had said.
Siemens AG, the promoter of the company, owns 75 per cent in Siemens Power Engineering, and the scheme has a mechanism to ensure that the public shareholding of 25 per cent would be maintained at all times pursuant to the requirement of the listing agreement.
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