CCI clears HCo, Hankook's stake buy in Halla Visteon Climate

Fair trade watchdog CCI has given its approval to Hahn & Co Auto Holdings Co and Hankook to buy jointly nearly 70 per cent stake in Halla Visteon Climate Control Corp (HVCC), which has presence in India.
Saying that the deal would not have any appreciable impact on competition, the regulator said there are no horizontal overlaps between the acquirers and the target company in India.
"There is also no vertical arrangement between the acquirers and the target in India," the Competition Commission of India (CCI) said.
The combination relates HCo acquiring 50.5 per cent stake in Halla Visteon Climate Control Corp (HVCC).

In the latter, Hankook would buy 19.49 per cent stake from VIHI, LLC - a wholly owned subsidiary of Visteon Corp.
Hahn & Co Auto Holdings Co (HCo), a special purpose vehicle set up in South Korea, is meant for investment by Hahn & Company I Private Equity Fund. The latter is controlled by private equity firm Hahn & Company.

Listed in South Korea, Hankook is into manufacture and sale of tyres, tubes and alloy wheels. The company, which is a subsidiary of Hankook Tire Worldwide Co, only has a liaison office in India for management of its distribution network.

HVCC, a South Korean firm, is into automobile climate control systems and fluid transport products, among others.
In India, HVCC has two subsidiaries - Visteon Automotive Systems India Pvt Ltd (VASI) and Halla Visteon Climate Systems India Pvt Ltd (HVCSI).
While VASI is engaged in the business of automotive electronics and climate control systems, HVCSI is into automotive climate control systems.
In its order dated March 5, the watchdog said neither HCo nor any of Hahn & Company's portfolio firms are engaged in the business of automotive climate control systems in India.
"There is no overlap between the products and services of HCo, Hahn & Company and HVCC in India," it noted.

For the deal, a share purchase agreement was entered into between HCo and Hankook, Visteon and VIHI last December.