CCI clears Emerson Electric, Nidec Corp deal

The Competition Commission has approved the proposed acquisition of motors, drives and electric power generation businesses of Emerson Electric by Nidec Corporation.
As per the deal, Nicec Corporation would acquire sole control of Emerson's motors, drives and electric power generation businesses, currently being operated under the brand names Leroy-Somer Electric Power Generation, Leroy-Somer Motors & Drives, Control Techniques and Kato Engineering.
Giving its go-ahead, the Competition Commission of India (CCI), said in a recent order that "the proposed combination is not likely to have appreciable adverse effect on competition in India".
In a deal valued at USD 1.2 billion, the companies entered into an asset and stock purchase agreement in August, 2016.

Observing that the market shares of Nidec and the target business are not significant to raise any competition concerns, CCI said the company, post combination, would continue to face competitive constraints.
"The Commission is of the opinion that the proposed combination is not likely to have AAEC in India and therefore, the Commission approved the same," the order said.
Nidec Corporation is active in the manufacture and sale of small precision motors, general motors, machinery, electronic and optical components.
US-based Emerson has business presence in process management, industrial automation and climate technologies, among others.