The Competition Commission of India has approved the proposed combination involving acquisition of 100% equity shareholding of the AAM India Manufacturing Corporation Private Limited by Bharat Forge Limited with voluntary modifications.

Bharat Forge Limited (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. It manufactures and supplies metal forging products including certain forged axle sub-components in India and outside India. Certain promoters of BFL (BNK Family) have controlling shareholding (through BF Investments Ltd.) in two joint ventures with Meritor Heavy Vehicle Systems, LLC (acquired by Cummins Inc. in 2022), in India i.e., Meritor HVS (India) Limited (MHVSIL) and Automotive Axles Limited (AAL).

AAM India Manufacturing Corporation Private Limited (AAMCPL) is a company incorporated in India and is primarily engaged in the business of manufacture and sale of axles for commercial vehicles in India.

The proposed combination is an acquisition of 100% equity shareholding of the AAMCPL by BFL. Prior to BFL acquiring the AAMCPL, (a) AAMCPL will hive-off (i) its ‘Pune Business Office’ which is engaged in the provision of captive IT support and product engineering services, and (ii) components business division that purchases vehicle components and exports the same to other group entities of AAMCPL (as pass-through sales), to one or more affiliates of its parent company – American Axle & Manufacturing Holdings Inc. (AAM Holdco), and (b) e-axle assembly lines that are currently housed in AAM Auto Component (India) Private Limited, another wholly owned subsidiary of AAM Holdco in India, will be acquired by the Target (Proposed Combination).

The Commission approved the proposed combination subject to compliance of voluntarily modifications offered by the Parties.

Detailed order of the Commission will follow.

Combination approval with voluntary modifications enables acquisition of a target company by buyer pending compliance with conditions. The Competition Commission of India approved Bharat Forge Limited's acquisition of 100% equity of AAM India Manufacturing Corporation Private Limited subject to compliance with voluntary modifications. Prior to acquisition, AAM India will hive off its Pune Business Office and a components business division to affiliates of its parent, and the target will acquire e-axle assembly lines currently housed in another group subsidiary, consolidating specified operations into the target.