The Competition Commission of India has invited comments from public in respect of proposed combination between Bharat Forge Limited and AAM India Manufacturing Corporation Private Limited.

On 23rd October, 2024, the Competition Commission of India (Commission) received a notice given by the Bharat forge Limited (BFL) under sub-section (2) of Section 6 of the Competition Act 2002 for the proposed acquisition of one hundred per cent (100%) shareholding of AAM India Manufacturing Corporation Private Limited (AAMCPL) and full and sole control over the Target [including e-axle assembly lines that the Target will acquire from AAM Auto Component (India) Private Limited (AAM Auto)] by BFL (Proposed Combination)  [Collectively, BFL and AAMCPL are referred to as ‘Parties’].

BFL is a global provider of safety and critical forged components and solutions to various sectors including automotive, railways, defence, construction, mining, aerospace, marine, and oil & gas. Certain promoters of BFL, through BF Investments Ltd., have 48.99% and 35.52% equity shareholding in Meritor HVS (India) Limited (MHVSIL) and Automotive Axles Limited (AAL) (collectively referred to as ‘Affiliate JVs’), two joint ventures with Meritor Heavy Vehicle Systems, LLC (acquired by Cummins Inc. in 2022), in India. AAMCPL is a company incorporated in India and is primarily engaged in the business of manufacture and sale of axles for commercial vehicles (CVs) in India. Affiliate JVs are also engaged in the manufacture and sale of axles for CVs in India.

The Commission is of the prima facie opinion that the proposed combination is likely to have an appreciable adverse effect on competition and, accordingly, has directed the Parties, in terms of Section 29(2) of the Competition Act, 2002, to publish details of the combination for bringing the combination to the knowledge or information of the public and persons affected or likely to be affected by such combination.

The Parties have already published the details of the proposed combination in all India editions of four newspapers viz., Mint, The Financial Express, Hindustan Times and The Indian Express on 19th March 2025 and the same is also hosted on the website of the Parties. The said details are also available on the website of the Commission (www.cci.gov.in).

As per the provisions of Section 29(3) of the Act, the Commission invites comments/objections/ suggestions in writing, from any person(s) adversely affected or likely to be affected by the proposed combination.  The same may be addressed to the Secretary, Competition Commission of India, Competition Commission of India, 9th Floor, Office Block – 1, Kidwai Nagar (East)
New Delhi: 110023, India or through email: [email protected], within ten days from the date of publication of details of the proposed combination.

The Commission is not likely to consider unsubstantiated objections.

Merger scrutiny: proposed acquisition in the axle market may lessen competition; public comments invited. The Commission is scrutinising a proposed acquisition where Bharat Forge seeks full control of AAM India Manufacturing, including certain assembly lines, and has formed a prima facie view of an Appreciable Adverse Effect on Competition in the commercial vehicle axle market. The Commission has required publication of details and invited written, substantiated comments, objections, and suggestions from persons likely to be affected, to be submitted to the Secretary within the prescribed period.