The Competition Commission of India (CCI) has approved the acquisition in Escorts Limited (Escorts) by Kubota Corporation (Kubota) and in Kubota Agricultural Machinery India Private Limited (KAI) by Escorts, under Section 31(1) of the Competition Act, 2002.
The Proposed Combination is relating to acquisition of 9.09 per cent of the total issued, subscribed and paid-up share capital of Escorts by Kubota. Upon completion of capital reduction process by Escorts, this will constitute 10 per cent of its total issued, subscribed and paid-up share capital.
Further, Escorts will acquire 40 per cent shareholding in KAI. Accordingly, Kubota and Escorts will hold 60-40 per cent shareholding respectively in KAI.
Kubota is a company incorporated under the laws of Japan. Kubota is an agriculture product manufacturer and offers various machinery such as tractors, combine harvesters and rice transplanters. Kubota also offers engineering, procurement, construction to maintenance, contributing to safety and security of water.
Escorts is engaged in the business of manufacturing and sale of agri-machinery, construction equipment and railway equipment in India.