INSUBCONTINENT EXCLUSIVE:
Competition Commission of India has cleared reorganisation of Motherson GroupThe Competition Commission of India (CCI) has given its
combination by the parties concerned.Motherson Group is a leading automotive component makers for original equipment
manufacturers."Commission receives a notice under green channel from Motherson Sumi Systems, Samvardhana Motherson International - Sumitomo
Wiring Systems relating to an intra-group reorganisation of the Motherson Group and is deemed approved," the regulator had earlier said in a
tweet.As part of the transaction, Motherson Sumi Systems Ltd's (MSSL) entire domestic wiring harness undertaking will be demerged into its
newly incorporated wholly-owned subsidiary, Motherson Sumi Wiring India Ltd (MSWIL).After the proposed demerger, Motherson Sumi Systems
Ltd's equity shares will be listed on the stock exchanges, according to a combination notice filed with the regulator.After the demerger,
Samvardhana Motherson International Ltd (SAMIL) will be amalgamated by absorption into MSSL, being the resultant company.On proposed
amalgamation, MSSL will be renamed as Samvardhana Motherson International Ltd (new SAMIL).SAMIL's entire equity shareholding in MSSL will
stand cancelled and the new SAMIL's equity shares issued to the shareholders of SAMIL will be listed on the stock exchanges.Besides, SAMIL
will be dissolved without winding up; and the new SAMIL will hold 33.43 per cent of the shareholding in MSWIL on the date of issuance, the
notice added.Currently, SAMIL is the single-largest shareholder in MSSL holding 33.43 per cent stake, and SWS holds 25.1 per cent
shareholding in MSSL as of December 2020.
