The Competition Commission of India (CCI) has cleared Honda Motor’s proposal to acquire an additional 21% stake in automotive components manufacturer Astemo from Hitachi.
Astemo was created in January 2021 through the integration of Hitachi Automotive Systems with three Honda group companies: Keihin Corporation, Showa Corporation and Nissin Kogyo
The company operates in India through the manufacture and sale of automotive components for automobiles, two-wheelers and power products. As part of the deal, Honda will buy 21% of Astemo’s common shares from Hitachi for about Y152.3bn ($941.7m). Following the transaction, Honda’s voting rights in Astemo will rise from 40% to 61%.
Hitachi’s holding will decline from 40% to 19%, while the 20% stake held by Japanese investment fund JICC-01 Limited Partnership will remain unchanged. In October 2023, JIC Capital joined Astemo as a shareholder through its subsidiary JICC-01. That move revised the ownership structure to 40% each for Honda and Hitachi, with JICC holding the remaining 20%.