Following anticipations, Tata Electronics receives CCI approval to acquire a majority stake in Pegatron India, expanding its smartphone manufacturing presence.
On Tuesday, Tata Electronics Pvt Ltd (TEPL), a wholly-owned subsidiary of Tata Sons, received approval from the Competition Commission of India (CCI) to acquire a majority stake in Pegatron Technology India.
This approval authorises TEPL to acquire the shares in two stages. TEPL, known for its expertise in producing high-precision components, is also involved in smartphone electronics manufacturing services (EMS).
Pegatron India, part of the Taiwanese Pegatron Corporation, provides EMS for major clients like Apple, exporting its products to North America, Asia, and Europe. In November 2023, Tata Electronics acquired the iPhone manufacturing unit of Taiwanese company Wistron in Bangalore for US$125 million.
The deal also includes the transfer of TEL Components’ business, a subsidiary of TEPL, to Pegatron India.
Earlier in 2024, there had been discussions between Tata Electronics and Pegatron regarding the acquisition of Pegatron India’s factory.
According to a report by Business Standard, the CCI’s approval was necessary as the acquisition exceeded certain financial thresholds, with the regulatory body ensuring that the deal would not negatively impact market competition.
Tata Electronics has a strong track record of working with large customers, and this acquisition further expands its foothold in the electronics manufacturing sector, particularly in smartphone production. The CCI’s green light reflects its confidence that the acquisition will not harm fair competition or market dynamics.
