General Motors India-SAIC deal gets Competition Comm nod

SAIC Motor HK, part of China's SAIC Motor Corp, has received the Competition Commission's approval to acquire certain assets of General Motors India.
The company, which has been planning to enter the Indian market, has proposed to buy certain assets of General Motor India's Halol plant in Gujarat.
In a tweet today, Competition Commission of India (CCI) said it has approved "SAIC Motor HK Investment Ltd's acquisition of assets of General Motors India Private Ltd."
General Motors India, maker of popular models such s Chevrolet Beat, Cruze and Tavera, has two manufacturing plants at Halol and Talegaon in Maharashtra.
Earlier this month, a GM India spokesperson had said discussions with SAIC on the sale of Halol are progressing well.

In another tweet, CCI said it has cleared the proposed acquisition of sole control of SAIC General Motors Investment Ltd by General Motors (Hong Kong) Company Ltd.

Mergers and acquisitions beyond a certain threshold requires approval from Competition Commission of India (CCI).
Last year, General Motors had announced to put on hold its planned USD 1 billion investment in India as well as review its future product plan for the country due to "unprecedented regulatory uncertainty" and change in customer preferences.
In 2015, the company had announced a turnaround plan for India entailing fresh investment of USD 1 billion and ceasing production at its Halol plant in Gujarat to consolidate manufacturing operations in Maharashtra.

However, later the company said that it would continue production from its Halol plant in Gujarat until March 2016, even as it continues to review future options, including sale of the facility.