Fair trade regulator CCI has approved French major Alstom's proposed sale of auxiliary components business to European investment firm Triton, saying the deal will not have an adverse impact on competition.
Alstom's auxiliary components business would be transferred to Triton subsidiaries - Alison Bidco and Alison Propco. The two arms of Triton have been established for the purpose of the proposed transaction.
In India, the proposed deal would involve transfer of the auxiliary components business of Alstom arm in the country to an affiliate of Alison Bidco.
In an order, the Competition Commission of India (CCI) said that "the proposed combination is not likely to have an appreciable adverse effect on competition in India and therefore, the Commission hereby approves the same under...The (Competition) Act".
The Commission noted that Alstom India is engaged in the auxiliary business, while none of the portfolio companies of the Triton group operating in the country are engaged in the same.
"Further, as per the details provided in notice, there are no existing or potential vertical relationships between the auxiliary business and Triton group in India," it added.
Alstom is one of the leading players in power generation, power transmission, engineering, rail and transport sector infrastructure, among others.
The auxiliary business comprises three product lines - air pre-heaters and gas-gas heaters for thermal power generation facilities, heat transfer solutions for industrial processes and grinding mills used in industrial applications.
Alstom had entered into a share purchase agreement with the Triton firms on April 1 this year, following which the entities had approached the Commission seeking its approval the same month.
