The Competition Commission of India (CCI) approves acquisition of shareholding in Hitachi Construction Machinery Co., Ltd. by HCJI Holdings G.K., Citrus Investments, HCJ Holdings 2 G.K., Japan Industrial V – GP K.K., and other investors.
Citrus Investments LLC (“Citrus”), a wholly owned subsidiary of ITOCHU Corporation (“Itochu”), HCJ Holdings 2 G.K. (“HCJ Holdings/HCJ HD2”), Japan Industrial – GP, Manalsu, Primrose GP, Shepherds Hill Partners III Ltd., and Sonora Partners III Ltd. through HCJI Holdings G.K. (“HCJI”), proposes to acquire 26% in the Hitachi Construction Machinery Co., Ltd. (“HCM/Target”) from Hitachi Ltd., on a fully diluted basis.
HCJI is currently a wholly owned subsidiary of Japan Industrial Partners Inc. HCJI was established as a limited liability company to hold shares in the Target and undertake all business incidental to the same. Prior to the Proposed Transaction, HCJI will be jointly held on 50:50 basis by (a) Citrus; and (b) HCJ HD2, and will change its corporate form to a stock company.
The ITOCHU Group operates in a comprehensive array of business domains, from upstream areas, such as transactions involving raw material, to downstream domains, such as retail. Itochu does not have any subsidiaries/ investee companies active in India.
HCM is listed on the Tokyo Stock Exchange. Its major shareholder and controlling parent company is Hitachi (holding 51.5 % of the shares in HCM). HCM is engaged in the manufacturing of mining and construction machinery and solution business (such as development, production, distribution of parts and service solutions as part of the after-sales services for mining facilities and equipment) globally. HCM also operates in India through the following subsidiaries and affiliates: (i) Tata Hitachi Construction Machinery Company Pvt Ltd; (ii) H-E Parts International LLC; and (iii) Bradken India Private Limited.
Detailed order of the CCI will follow.