Fair trade regulator CCI has cleared the proposed acquisition of Hitachi's building heating, ventilation and air conditioning business by Johnson Controls.
Giving its green signal, CCI said the deal "is not likely to have an appreciable adverse effect on competition in India".
Under the transaction, Johnson Controls would acquire Hitachi Appliance's worldwide building heating, ventilation and air conditioning (HVAC) business, excluding certain operations and assets.
Hitachi Appliances is a wholly-owned subsidiary of Hitachi.
In India, Johnson Controls has presence through its subsidiary Johnson Controls (India) Pvt Ltd, which is into building HVAC automation system, among others. The latter also indirectly holds shares in Rolastar Pvt Ltd and Ruskin Titus India Pvt Ltd.
Rolastar offers duct work accessories and technical support for HVAC applications and Ruskin offers air control products for the HVAC systems in India.
Hitachi Appliances is present through its subsidiary Hitachi Home and Life Solutions (India) Ltd -- which is into manufacturing, selling and trading of ACs, refrigerators, chillers and VRF systems. Hitachi Appliances also has an indirect minority shareholding in Highly Electrical Appliances India Pvt Ltd (HEAIPL) and that is into manufacture and sale of compressors for ACs in India.
"It is also noted that Johnson Controls' and Hitachi Appliance's presence in the ancillary HVAC products is not significant enough to give rise to any concern of vertical foreclosure.
"Moreover, there are various other domestic as well as global players engaged in these products in India," CCI said in its order dated May 7 and made public today.
