The Competition Commission of India (CCI) has approved acquisition (i) in Escorts by Kubota Corporation (Kubota) and (ii) in Kubota Agricultural Machinery India (KAI) by Escorts, under Section 31(1) of the Competition Act 2002.
The proposed combination is relating to acquisition of 9.09 percent of the total issued, subscribed and paid-up share capital of Escorts by Kubota.
Upon completion of capital reduction process by Escorts, this will constitute 10 percent of its total issued, subscribed and paid-up share capital.
Further, Escorts will acquire 40 percent shareholding in KAI. Accordingly, Kubota and Escorts will hold 60-40 percent shareholding respectively in KAI.
Kubota is a company incorporated under the laws of Japan. It is a comprehensive agriculture product manufacturer and offers various machinery such as tractors, combine harvesters and rice transplanters. It also offers engineering, procurement, construction to maintenance, contributing to safety and security of water.
Escorts is engaged in the business of manufacturing and sale of agri-machinery, construction equipment and railway equipment in India.