India regulator clears Honda bid to buy extra 21% stake in Astemo from Hitachi

The Competition Commission of India (CCI) has cleared Honda Motor's connection to get an further 21% involvement successful automotive components shaper Astemo from Hitachi.

Astemo was created successful January 2021 done the integration of Hitachi Automotive Systems with 3 Honda radical companies: Keihin Corporation, Showa Corporation and Nissin Kogyo.

The institution operates successful India done the manufacture and merchantability of automotive components for automobiles, two-wheelers and powerfulness products.

As portion of the deal, Honda volition bargain 21% of Astemo's communal shares from Hitachi for astir Y152.3bn ($941.7m).

Following the transaction, Honda's voting rights successful Astemo volition emergence from 40% to 61%.

Hitachi's holding volition diminution from 40% to 19%, portion the 20% involvement held by Japanese concern money JICC-01 Limited Partnership volition stay unchanged.

In October 2023, JIC Capital joined Astemo arsenic a shareholder done its subsidiary JICC-01.

That determination revised the ownership operation to 40% each for Honda and Hitachi, with JICC holding the remaining 20%.

Honda and Hitachi signed the stock transportation statement successful December 2025.

After the woody is completed, Astemo volition nary longer beryllium treated arsenic an equity-method subordinate of Hitachi and volition go a consolidated subsidiary of Honda.

Honda has said that, arsenic the genitor company, it plans to steer Astemo's enlargement arsenic a planetary automotive supplier, portion an archetypal nationalist offering continues to beryllium considered.

Hitachi said it would usage the proceeds successful enactment with its superior allocation argumentation to maximise firm worth and enactment maturation nether its "Inspire 2027" absorption plan.

It besides said the woody would not person a worldly effect connected its consolidated fiscal statements.

The institution added that it would proceed to backmost Astemo's sustainable maturation arsenic a shareholder aft the transfer, peculiarly successful integer technologies, portion keeping an IPO nether consideration.

The transaction is scheduled to adjacent successful the archetypal 4th of the fiscal twelvemonth ending 31 March 2027, taxable to regulatory clearances and customary closing requirements.

"India regulator clears Honda bid to bargain other 21% involvement successful Astemo from Hitachi" was primitively created and published by Just Auto, a GlobalData owned brand.