Tata Electronics' proposal to acquire majority stake in Pegatron India gets CCI nod

India's antitrust regulator, the Competition Commission of India (CCI), on Tuesday, January 7, approved Tata Electronics' proposal to acquire a majority stake in Pegatron Technology India. 

“Commission approves the acquisition of certain shareholding of Pegatron Technology India Pvt. Ltd. (Pegatron India) by Tata Electronics Pvt. Ltd. and the transfer of TEL Components Pvt. Ltd.’s business undertaking to Pegatron India,” said the competition regulator in a social media post on platform X.

Tata Electronics will acquire the majority stake in two segments, reported the news agency PTI, citing an official statement. Pegatron Technology India is one of Apple's contract manufacturers in the nation.

CCI also agreed to Tata Electronics' transfer of the business undertaking of TEL Components, a subsidiary of TEPL, to Pegatron India, as per the report.

Pegatron India is a subsidiary of Taiwan-based Pegatron Corporation. The company, Pegatron India is engaged in the provision of electronics manufacturing services for smartphones like Apple and exports its products to countries in North America, Asia and Europe markets, reported the agency. 

About Tata Electronics

Tata Electronics Pvt Ltd (TEPL) is a wholly owned subsidiary of Tata Sons, which holds all Tata Group firms. The electronics maker has expertise in manufacturing high-precision components for large customers.

Tata Electronics Pvt Ltd was formerly known as Wistron Infocomm Manufacturing (India). The company also is involved in the provision of electronics manufacturing services (EMS) for smartphones.

The Tata Electronics acquisition deal has been in discussion with Pegatron since April 2024. The Tata-Group-run company also acquired the iPhone unit of Taiwanese company Wistron in Bangalore for $125 million in November 2023, according to the agency report.

CCI keeps a check on the unfair business practices in India, and deals above a certain level will require the regulator's permission in order to promote fair competition in the Indian markets.