CCI approves Harman's Symphony Teleca acquisition

Fair trade regulator CCI has cleared the acquisition of US-based software firm Symphony Teleca Corp by Harman International Industries, saying the deal does not raise anti-competitive concerns in India.
Symphony would be acquired by Harman, a US-based company engaged in making and marketing audio products and electronic systems for automotive, consumer and professional industries.
As per the deal, Sabita Sub Inc -- an arm of Harman -- would merge into Symphony which then being the surviving entity will become the subsidiary of Harman.
In its order, the Competition Commission of India (CCI) ruled that "the proposed combination is not likely to have an appreciable adverse effect on competition in India".

Symphony is present in India through its subsidiaries -- Symphony India, Aditi India and INSP India.
Besides, Harman operated India through its arms -- Harman International (India) Pvt Ltd and AMX Products and Solutions Private Ltd.

"Whereas, Symphony India and Aditi India are engaged in the provision of services similar to Symphony that is software development services, INSP India is currently not engaged in any business activity," CCI said in the order.
Noting that Symphony offers services to a variety of industries, including software, mobile devices, automotive, consumer electronics, CCI said there is "no horizontal overlap" between Symphony and Harman in India.

While observing that there was "a vertical relationship between Symphony and Harman as Symphony provides software development services to Harman", CCI said the revenue generated by such services constituted only an "insignificant part of Symphony's revenues generated in India".
"It is also noted that the services supplied by Symphony constitutes only a small fraction of total such services procured by Harman in India," it added.
The companies had approached the Commission on February 18 for the approval.