CCI approves Tata Electronics’ Pegatron acquisition
Recently the Competition Commission of India (CCI) has approved Tata Electronics Pvt Ltd’s bid to acquire an over 50% controlling stake in another Taiwanese company Pegatron Technology India Pvt Ltd, a subsidiary of Taiwan based electronic device manufacturer Pegatron Corporation who is an original design manufacturer for Apple Inc.
High precision auto components are produced by TATA’s wholly-owned subsidiary TEPL for its specified clients. The transaction will be implemented in two phases to enable TEPL to own over 50 per cent of Pegatron India. Further, the CCI has cleared the acquisition of TEL Components Pvt Ltd, a step down subsidiary of TEPL, by Pegatron India.
This strategic initiative is amongst other strategic plans that Tata Electronics is seeking to expand its market footprint in the EMS industry or smartphone manufacturing. However, specifically, in November of 2023, Tata Electronics bought Wistron’s iPhone unit located in Bangalore for USD 125 million.
It is a positive signal for Tata Electronics’ development plan, which is in line with Apple’s broader goal of expanding the supply chain networks due to geopolitical challenges. Morgan Stanley Research estimated India’s share to increase at 20-25% of overall iPhone shipment this year from12-14% last year.
