CCI Seeks Public Comments on Bharat Forge’s Acquisition of AAM India

New Delhi, Mar 20 (KNN) The Competition Commission of India (CCI) has called for public comments on Bharat Forge Ltd’s proposed acquisition of AAM India Manufacturing Corporation Pvt Ltd, following concerns that the transaction may impact market competition.

Bharat Forge, a key player in the forged components industry, had approached CCI in October 2023 for approval to acquire AAM India, a company engaged in manufacturing and selling axles for commercial vehicles.

According to a statement released on Wednesday, CCI has conducted a preliminary review and believes that the acquisition could have a significant adverse effect on competition.

Under Section 29(2) of the Competition Act, 2002, the regulator has directed the involved parties to disclose the deal’s details publicly.

This step aims to inform stakeholders and allow those potentially affected by the acquisition to voice their concerns.

“The Commission is of the prima facie opinion that the proposed combination is likely to have an appreciable adverse effect on competition,” the release stated.

Deals exceeding a certain financial threshold require approval from CCI, which monitors and prevents anti-competitive practices across industries.

The public consultation process is a crucial part of its regulatory oversight, ensuring fair market practices and preventing monopolistic tendencies.

The comments from stakeholders and the general public will help CCI determine whether the acquisition should proceed or if additional conditions need to be imposed to safeguard competition.

As Bharat Forge looks to expand its presence in the commercial vehicle component sector, the outcome of CCI’s review will be pivotal in shaping the market dynamics within the industry.

(KNN Bureau)