American & Efird Global has received Competition Commission's nod to buy an additional 40 per cent stake in Vardhman Yarns and Threads (VYTL), which would make the US firm a majority stakeholder.
VYTL -- a joint venture between American & Efird Global (A&E) and Vardhman Textiles (VTXL) -- is into making sewing and specialty threads, among others.
Under the deal, A&E will acquire an additional 40 per cent of the share capital in VYTL from the joint venture partner, thereby increasing its overall stake to 89 per cent.
Giving the green light, the fair trade regulator said the "proposed combination is not likely to have an appreciable adverse effect on competition in India".
In India, A&E Group is present through VYTL and Gutermann India (GI), a wholly-owned subsidiary.
Noting that VYTL and GI have insignificant market shares in the segments for apparel, automotive and specialty threads, the Competition Commission of India (CCI) said "each segment is characterised by the presence of a number of competitors".
In a recent order, CCI said that on account of the insignificant presence of GI in segments for apparel, automotive and specialty threads, "there is no likelihood of vertical foreclosure".
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