Fair trade regulator Competition Commission of India (CCI) on Wednesday said that it had approved Hyundai Motor Company (HMC) and Kia Motors Corporation’s (KMC’s) acquisition of shareholding in ANI Technologies Private Limited (ANI), the parent company of ride-hailing firm Ola, and its electric vehicle arm Ola Electric Mobility Private Limited (OEM). This approval came under Section 31(1) of the Competition Act, 2002.
The proposed combination relates to HMC and KMC’s acquisition of equity stake in ANI and OEM.
In March this year, Hyundai and Kia had said they would invest $300 million in Bengaluru-based Ola. The partnership was expected to help Ola intensify its battle with US rival Uber, which is rapidly gaining share in the Indian market. The agreement enables the companies to extensively collaborate on developing unique fleet and mobility solutions, building India-specific electric vehicles and infrastructure.
Under to the strategic collaboration, the companies have agreed to co-create solutions to operate and manage fleet vehicles. The partnership also marks the Hyundai Motor group's foray into the industry, as it expands operations from automobile manufacturing and sales to total fleet solutions. Euisun Chung, executive vice-chairman of Hyundai Motor Group, had said that India was the centerpiece of Hyundai Motor Group's strategy to gain leadership in the global mobility market and its partnership with Ola would certainly accelerate the company’s efforts to transform into a smart mobility solutions provider.
HMC and KMC are part of Hyundai Motor Group (HMG), engaged in the business of manufacturing and distribution of automobiles and parts and accessories. The other activities include after-sales service, research and development of automotive engineering across several countries in the world. In India, HMC primarily operates through its subsidiary Hyundai Motors India Limited. KMC operates through its subsidiary Kia Motors India Private Limited.
CCI approved the proposed combination subject to the carrying out of modifications proposed by HMC and KMC under Regulation 19 (2) of the CCI (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011.