Tata Electronics gets CCI's nod to acquire majority stake in Pegatron India

The Competition Commission of India (CCI) on Tuesday approved Tata Electronics' proposal to acquire a majority stake in Apple's contract manufacturer Pegatron Technology India.

Tata Electronics Pvt Ltd (TEPL) is a wholly-owned subsidiary of Tata Sons. TEPL have expertise in manufacturing high-precision components for large customers.

The proposed combination envisages TEPL to acquire the majority shareholding of Pegatron India in two tranches, CCI said in a release.

TEPL, through Tata Electronics Systems Solutions (formerly known as Wistron Infocomm Manufacturing (India), is also engaged in the provision of electronics manufacturing services (EMS) for smartphones.

The fair trade regulator also granted nod to Tata Electronics to transfer the business undertaking of TEL Components, an wholly-owned subsidiary of TEPL, to Pegatron India.

"Commission approves the acquisition of certain shareholding of Pegatron Technology India Pvt Ltd (Pegatron India) by Tata Electronics Pvt Ltd (TEPL) and the transfer of TEL Components Pvt Ltd (TEL) business undertaking to Pegatron India," the regulator said in a post on X.

Pegatron India is a subsidiary of Pegatron Corporation. Pegatron India is engaged in the provision of electronics manufacturing services for smartphones like Apple Inc and exports its products to countries in North America, Asia and Europe.

In April, Tata Electronics was in discussion with Pegatron to acquire a majority stake in its India factory.

Tata Electronics acquired the iPhone unit of Taiwanese company Wistron in Bangalore for USD 125 million in November 2023.

The deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices and promotes fair competition in the marketplace.