CCI Seeks Public Opinion on Bharat Forge-AAM India Merger due to Likely Appreciable Adverse Effect on Competition
The concerns were raised by the CCI since both Bharat Forge and AAM India operate in the commercial vehicle axle sector
CCI Seeks Public Opinion – Public Opinion on Bharat Forge-AAM India Merger – Bharat Forge-AAM India Merger – Appreciable Adverse – Appreciable Adverse Effect on Competition – taxscan
CCI Seeks Public Opinion – Public Opinion on Bharat Forge-AAM India Merger – Bharat Forge-AAM India Merger – Appreciable Adverse – Appreciable Adverse Effect on Competition – taxscan
The Competition Commission of India (CCI) has invited public comments on the proposed merger between Bharat Forge Limited (BFL) and AAM India Manufacturing Corporation Private Limited (AAMCPL), citing concerns over a likely appreciable adverse effect on competition.
The CCI has taken a prima facie view that the proposed acquisition of 100% shareholding and control of AAMCPL by Bharat Forge may have adverse impacts on best practices to sustain healthy market competition. Such a concern was raised by CCI in terms of the Section 29(2) of the Competition Act, 2002, which mandates an investigation if a merger could substantially lessen competition, create a dominant market player, or harm consumer interests.
Who Are Bharat Forge and AAM India?
Worried About SME IPO Pitfalls? Gain Clarity with This Advanced Course! Register Now
Bharat Forge Limited (BFL) is a global supplier of forged safety-critical components catering to various industries, including automotive, railways, defence, construction, aerospace, marine, and oil & gas. Bharat Forge is also involved in the axle manufacturing sector through its joint ventures.
AAM India Manufacturing Corporation Private Limited (AAMCPL) is a subsidiary of American Axle & Manufacturing (AAM) and is primarily engaged in the manufacture and sale of axles for commercial vehicles in India. AAMCPL’s business ventures overlap with Bharat Forge’s existing interests in the commercial vehicles axle sector.
The proposed merger between Bharat Forge and AAMCPL would create a super-entity in the commercial vehicle axle sector, bringing apprehensions of reduced competition, price manipulation, or barriers to entry for other players in the market.
The Public Consultation Process
The public consultation process is a mechanism undertaken by the Competition Commission of India to understand the ground reality of matters and give all market participants and stakeholders a fair chance to raise concerns before the merger is approved or modified.
Worried About SME IPO Pitfalls? Gain Clarity with This Advanced Course! Register Now
To ensure transparency, the CCI has directed Bharat Forge and AAMCPL to publish details of the proposed merger in four leading newspapers: Mint, The Financial Express, Hindustan Times, and The Indian Express. The details are also available on the CCI’s official website (www.cci.gov.in) and the companies’ websites.
As per Section 29(3) of the Competition Act, 2002, any affected party or individual can submit comments, objections, or suggestions in writing regarding the merger.
Individuals interested in sharing their comments on the merger may send in their submissions must be sent within ten days from March 19, 2025, via:
Address: Secretary, Competition Commission of India, 9th Floor, Office Block – 1, Kidwai Nagar (East), New Delhi – 110023, India
Email: secy@cci.gov.in
CCI is unlikely to entertain unsubstantiated objections towards the merger, hence applicants are advised to prepare thorough drafts for the same.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
