Competition Commission of India Approves Toshiba Corporation- TBJH Deal

Competition Commission of India Approves Toshiba Corporation- TBJH Deal

The Competition Commission of India (CCI) has approved the proposed deal involving Toshiba Corporation and TBJH Inc, an indirect subsidiary of private equity firm Japan Industrial Partners.

The transaction deal has been cleared under the green channel route.

The combination relates to TBJH Inc acquiring the complete shareholding of Toshiba Corporation. The Proposed Combination was notified to the competition regulator under Section 5(a) of the Competition Act, 2002.

TBJH Inc., acquirer is a Japanese multinational conglomerate. The acquirer is an indirect subsidiary of Japan Industrial Partners, Inc. (JIP) and was incorporated as a special purpose company with the main objective of promoting business growth and maximizing investment value of the target- Toshiba through the expansion of the business value of the Target.

TBHJ Inc., in march had announced that it will buy out all of Toshiba’s shares listed on the Nagoya and Tokyo stock exchanges and take the business private.

The target- Toshiba corporation is a multinational conglomerate, which operates businesses worldwide in seven domains, namely- (i) Energy Systems & Solutions; (ii) Infrastructure Systems & Solutions; (iii) Building Solutions; (iv) Retail & Printing Solutions; (v) Electronic Devices & Storage Solutions; (vi) Digital Solutions; and (vii) Others (including battery and other products).

The update on CCI website read, “The parties (including their affiliates) activities do not exhibit any horizontal, vertical, or complementary overlaps in any of the plausible relevant markets in India.”

Therefore, the Proposed Combination was notified under the green channel route in terms of Regulation 5A and Schedule III of the Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011 (as amended).

Under the green channel route, a transaction which does not poses any risk of an appreciable adverse effect on competition is deemed to be approved on being intimated to the CCI.