CCI approves Tata Electronic’s proposal to acquire Pegatron India

Competition Commission of India (CCI) has approved the proposed acquisition of majority shareholding of Pegatron Technology India Pvt Ltd by Tata Electronics Pvt Ltd (TEPL) and the transfer of TEL Components Pvt Ltd’s (TEL) business to Pegatron India

As per the proposed deal, TEPL will acquire majority shareholding of Pegatron India in two tranches, while TEL, a wholly owned subsidiary of TEPL will transfer its business to Pegatron India.

TEPL was looking to acquire a 60 per cent stake in Pegatron India since November last year. With a 10,000-strong workforce at its sole plant in Chennai, Pegatron India produces 5 million iPhones annually. It also provides electronics manufacturing services to smartphone manufacturers like Apple and exports its products to North America, Asia, and Europe.

TEPL, is a Tata Group company specialising in the manufacture of high-precision components for major customers like Apple. It manufactures smartphone frames. Also, through its subsidiary Tata Electronics Systems Solutions (formerly Wistron Infocomm Manufacturing (India) Private Limited), manufactures electronic components for smartphones.

The Tata Group company acquired the iPhone unit of Taiwanese company Wistron in Bangalore for $125 million in November 2023.

Further, TEPL, through its another subsidiary,TEL, is setting up a greenfield facility for smartphone component manufacturing.

Pegatron India, a subsidiary of Pegatron Corporation, provides electronics manufacturing services to smartphone brands within and outside the country.