Paloma Rheem Holdings gets CCI nod to acquire Fujitsu General for $1.6 bn

Fair trade regulator CCI has approved Paloma Rheem Holdings' proposal to acquire Japanese air-conditioner maker Fujitsu General for $1.6 billion.

Fujitsu General specialises in air conditioning solutions for residential, commercial, and industrial segments and related IT systems and devices. The company, which operates in India through its subsidiary Fujitsu General (India), also sells air conditioning units under the O General brand.

"The proposed transaction relates to Paloma Rheem's acquisition of the entire shareholding of Fujitsu," a notice submitted to the CCI said on Monday.

The transaction will enable Paloma Rheem to realise long-term growth and development opportunities, it added.

After the approval, Fujitsu General will become a wholly-owned subsidiary of Paloma Rheem Holdings.

Japan-headquartered Paloma Rheem Holdings Co is one of the world's leading air conditioning and water heating companies.

The Competition Commission of India (CCI) said the deal has been cleared under the green channel route.

Green channel is an automatic approval system whereby a combination which does not raise any risk of an appreciable adverse effect on competition and is deemed to have been approved by the CCI upon receiving the filing of the notice for the combination by the parties concerned.

"There are no horizontal overlaps, vertical or complementary relationships between the activities of the parties (Paloma Rheem and Fujitsu General) in India. Accordingly, the proposed transaction does not raise any risk of appreciable adverse effect on competition in India," the notice said.

Last month, Paloma Rheem Holdings Co said it intends to make a tender offer to acquire all outstanding common shares of Fujitsu General Ltd to make it a wholly-owned subsidiary.

The deal would help Paloma Rheem to expand into new foreign markets and drive innovation in integrated air and water solutions for decarbonisation.