Updated January 24th, 2024 at 10:44 IST
JSW Group receives CCI nod to acquire 38% stake in MG Motor India
The newly incorporated entity, JSW Ventures Singapore, is wholly owned by JSW International Tradecorp Pte Ltd. MG Motor India.
JSW to invest in MG Motor India: JSW Ventures Singapore Pte Ltd has received approval from the Competition Commission of India (CCI) for the acquisition of approximately 38 per cent of the share capital of MG Motor Pvt Ltd. JSW Ventures, a subsidiary of JSW International Tradecorp Pte Ltd within the JSW Group, is set to acquire a major stake in MG Motor India Private Limited.
The newly incorporated entity, JSW Ventures Singapore, is wholly owned by JSW International Tradecorp Pte Ltd. MG Motor India, operating in the manufacturing and sales of passenger cars and electric vehicles under the 'MG' brand, will undergo this strategic change in ownership. The CCI has approved, and a detailed order from the commission will follow.
This follows a joint venture announced in November of the previous year between China's SAIC Motor and JSW Group. In that venture, JSW Group secured a 35 per cent stake in MG Motor India, with the objective of fostering growth and transformation. MG Motor UK is owned by SAIC Motor UK.
The joint venture focuses on various aspects, including local sourcing, charging infrastructure improvement, production capacity expansion, and the introduction of a wider range of vehicles, particularly in the realm of green mobility. SAIC Motor's decision to reduce its ownership in MG Motor India aligns with evolving dynamics in the wake of increased scrutiny of Chinese investments by the Indian government.
The collaboration positions itself as a leader in the electric vehicle (EV) ecosystem, underlining the development of a robust supply chain and a sustainable automotive ecosystem in India. Using SAIC Motor's automotive expertise and JSW Group's extensive presence across Indian sectors, the joint venture anticipates a strong impact on the Indian automotive industry.
Published January 24th, 2024 at 10:44 IST