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Competition Commission clears FIMI-Deere deal

Press Trust of India  |  New Delhi 

Competition Commission has approved proposed deal of Israeli firm FIMI V 2012 to acquire US-based Deere & Company's water segment business which includes irrigation related products.

According to the fair trade regulator the proposed deal will not have an adverse impact on competition in India.

Under the proposed deal entered into in February, FIMI V 2012 would buy the water segment of Deere, which forms part of the US-based firm's 'agriculture and turf division' and consists of irrigation related products like sprinklers, sprayers, online drippers, drip lines and filtration.

For the purpose of the deal, FIMI has established a new Israeli company called FIMI Irrigation Ltd which in turn would incorporate a wholly owned subsidiary in India for acquiring the assets of the water segment of Deere's arm in India.

In an order dated May 15, CCI said that "the proposed combination is not likely to have an appreciable adverse effect on competition in India".

The Commission noted that FIMI has presence in India only through one of its portfolio company T A T Technologies and which is engaged in the business of manufacturing parts for the aerospace industry.

FIMI is controlled by an Israeli resident Ishay Davidi through Ishay Davidi Holdings.

Deere has three business segments -- agriculture and turf, construction and forestry and financial services. The company is present in India through its subsidiary John Deere India Private Ltd which is engaged in tractor manufacturing, information technology, engineering, among others.

FIMI and Deere had entered into a 'Master Purchase Agreement' on February 26, this year.

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First Published: Tue, May 20 2014. 18:36 IST