CCI approves JSW Group's acquisition of up to 38% in MG Motor India

In November last year, the JSW Group had announced the acquisition of a 35 per cent stake in MG Motor India

The Competition Commission of India (CCI) has approved the acquisition of approximately 38 per cent of share capital of MG Motor Pvt Ltd by JSW Ventures Singapore Pte Ltd. 

JSW Ventures is a wholly-owned subsidiary of JSW International Tradecorp Pte Ltd and is part of the JSW Group.

"The commission approved acquisition by JSW Ventures Singapore Pte Limited, for up to approximately 38 per cent of the share capital of MG Motor India Private Limited. The acquirer is a newly incorporated entity and is not engaged in any activities as on date. It is a wholly owned subsidiary of JSW International Tradecorp Pte Limited and belongs to JSW Group," the CCI said in an official statement.

 

MG Motor India, incorporated in India, is primarily engaged in the manufacturing and sales of passenger cars and electric vehicles under the brand 'MG', the CCI stated, adding that a detailed order of the commission will follow. 

In November last year, China's SAIC Motor and JSW Group announced a strategic joint venture, with JSW Group securing a 35 per cent stake in MG Motor India. MG Motor UK is owned by SAIC Motor UK.

The joint venture was signed with the objective of focusing on the growth and transformation of MG Motor in India, bringing together resources in automobiles and new technology. 

The collaboration, they stated, would also focus on local sourcing, charging infrastructure improvement, production capacity expansion, and the introduction of a wider range of vehicles prioritising green mobility.

SAIC Motor announced plans to reduce its ownership of MG Motor India, allowing domestic entities to hold a majority stake. This move comes amid increased scrutiny of Chinese investments by the Indian government.

The joint venture will also work to develop the EV ecosystem and aims to take a leadership position in this domain, the company stated. 

The partnership will leverage SAIC Motor's extensive automotive experience and JSW Group's extensive presence across Indian B2B and B2C sectors to establish a robust supply chain and create a sustainable automotive ecosystem in India, JSW added.