CCI Approves Tata Electronic's Majority Stake Acquisition in Pegatron India

The Competition Commission of India (CCI) sanctioned Tata Electronics' plan to acquire a majority stake in Apple's contract manufacturer Pegatron Technology India. Tata Electronics Pvt Ltd (TEPL) is a fully-owned division of Tata Sons. TEPL possesses proficiency in producing high-precision.

The proposed combination envisages TEPL obtaining the majority stake in Pegatron India in two installments, according to a release from CCI. TEPL, via Tata Electronics Systems Solutions (previously called Wistron Infocomm Manufacturing (India)), is also involved in offering electronics manufacturing services (EMS) for smartphones.

The fair trade authority also approved Tata Electronics' transfer of the business operations of TEL Components, a wholly-owned subsidiary of TEPL, to Pegatron India.

"Commission approves the acquisition of certain shareholding of Pegatron Technology India Pvt Ltd (Pegatron India) by Tata Electronics Pvt Ltd (TEPL) and the transfer of TEL Components Pvt Ltd (TEL) business undertaking to Pegatron India," the regulator said in a post on X.

Pegatron India operates as a division of Pegatron Corporation. Pegatron India specializes in offering electronics manufacturing services for smartphones such as those from Apple Inc and exports its goods to nations in North America, Asia, and Europe. In April, Tata Electronics was negotiating with Pegatron to obtain a controlling interest in its factory in India.

In November 2023, Tata Electronics purchased the iPhone division of the Taiwanese firm Wistron in Bangalore for USD 125 million. Transactions exceeding a specific limit need to gain authorization from the regulator, who monitors unethical business conduct and fosters equitable competition within the market.