The Competition Commission of India (CCI) as on the 10th of February, 2020 has officially approved to transfer Ford India's automotive business to Mahindra-Ford JV.
In October 2019, Mahindra and Mahindra had put forth their interest in buying 51% of stakes in Ardour Automotive Pvt Ltd for a total transaction of Rs. 657 crores. CCI observed that the current acquisition has resulted in the majority of stakes for Mahindra to have a wholly owned subsidiary of Ford Motor Co., further leading to the creation of a joint venture for the company.
The remaining stake of 49% in the Ardour Automotive will be held by Ford Motor Co. or any of it's affiliated. This new venture will help in the acquirement of business of Ford India Pvt Ltd. (FIPL), a wholly ownded subsidiary of Ford Motor Co.
The automotive business further includes the vehicle manufacturing plants of Ford India that are currently located in Chennai and Sanand.
The news reported by a tweet on the 10th of February, 2020, Monday, that was posted by the Competition Commission of India (CCI) and stated that it has approved "formation of JV (joint venture) between Mahindra & Mahindra and Ford Motor and transfer of automotive business of Ford India to the JV".
Author - Dyuti Pandya