L&T-Dell deal gets Competition Commission's nod

Competition Commission has cleared L&T Technology Services' proposed acquisition of IT company Dell International Services India certain assets related to engineering services business.

According to the fair trade regulator the proposed deal does not raise anti-competition concerns in the country.

L&T Technology Services had entered into an 'Asset Purchase Agreement' with Dell International on July 22, 2014 to acquire certain assets and liabilities of the latter related to the business of providing engineering services.

In an order dated October 1, Competition Commission of India (CCI) said that the "proposed combination is not likely to have an appreciable adverse effect on competition in India".

Noting that both parties to the combination are engaged in providing engineering services outsourcing business, CCI said that " Dell International Services India predominantly provides these services by way of exports to Dell Product and Process Innovation Services Corp".

"Further, L&T India does not have any significant presence in engineering services outsourcing business in India as its service customers are mostly based outside India and its significant proportion of revenue comes from exports," it added.

Citing submission from the two companies, the regulator said that L&T Technology Services has a market share of less than 10 percent in engineering services business while that of Dell International is insignificant.

It also observed that there were other significant competitors operating in this market segment in the country.

As per the order, the 'Asset Purchase Agreement' is simultaneous to another transaction which relates to the proposed acquisition of certain assets and liabilities of Dell Product and Process Innovation Services Corp and incidental to the business of providing engineering services, by L&T Technology Services LLC.

Dell International is a group company of Dell Inc, a global information technology (IT) company based in USA. In addition to engineering services outsourcing, the firm also provides designing and developing of technology enabled business transformation solutions.

L&T Technology is part of Larsen and Turbo Ltd and provides engineering services in the field of industrial products, medical devices, transportation, telecom and process engineering.

Both the companies had filed for CCI approval on August 19, this year.