Competition Commission of India approves deal involving Carlyle group, Illinois Tool

Apr 10 2014, 14:57 IST
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The fair trade regulator said the proposed combination is not likely to have an appreciable adverse effect, (Reuters) The fair trade regulator said the proposed combination is not likely to have an appreciable adverse effect, (Reuters)
SummaryCompetition Commission has cleared Carlyle group firm Vault Bermuda Holding Company's proposed acquisition of the industrial packaging division of Illinois Tool Works.

Competition Commission has cleared Carlyle group firm Vault Bermuda Holding Company's proposed acquisition of the industrial packaging division of Illinois Tool Works.

Giving its green signal, the fair trade regulator said the proposed combination is not likely to have an appreciable adverse effect on competition in India.

For the proposed deal, a stock purchase agreement has been entered into between Vault Bermuda, Illinois Tool Works (ITW) and some of the subsidiaries of ITW.

One of the subsidiaries involved in the combination - SPG Netherlands Holdings CV - is the holding company of Signode India Ltd. The latter is the step down subsidiary of ITW.

Post deal, ITW would have no interest in Signode India and the latter will become a subsidiary of Vault Bermuda.

Citing details provided in the notice, Competition Commission of India (CCI) said the acquirer group does not have investment in the industrial packaging segment in India.

"...some of the portfolio companies of the acquirer group may be consumers of the industrial packaging and related equipments, however, none of these companies in India had purchased any such products from the Indian target in the years 2012 and 2013," said the CCI order, dated April 3 and released today.

Vault Bermuda, set up as a special purpose vehicle for this combination, is owned and controlled by the funds managed by global asset management major Carlyle Group.

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