Bharat Forge up 5% as CCI invites comments on AAM India deal; BSE, NSE seek clarification

Shares of Bharat Forge Ltd climbed 5 per cent in Thursday's trade after the Competition Commission of India (CCI) invited comments from public regarding the proposed deal between Bharat Forge and AAM India Manufacturing Corporation. The Bharat Forge stock advanced 4.86 per cent to hit a high of Rs 1,189 on BSE. Stock exchanges BSE and NSE today sought clarification from Bharat Forge on a media report on the same.

On October 23, 2024, the CCI received a notice by Bharat forge for the proposed acquisition of 100 per cent per cent shareholding of AAM India Manufacturing Corporation Private Limited (AAMCPL) and full and sole control over the target, including e-axle assembly lines that the target company was to acquire from AAM Auto Component (India).

CCI was of the prima facie opinion that the proposed combination is likely to have an appreciable adverse effect on competition and, accordingly, directed the parties to publish details of the combination for bringing the combination to the knowledge or information of the public and persons affected or likely to be affected by such combination.

On March 19, CCI said the parties have already published the details of the proposed combination in all India editions of four newspapers and the same is also hosted on the website of the parties.

"As per the provisions of Section 29(3) of the Act, the Commission invites comments/objections/ suggestions in writing, from any person(s) adversely affected or likely to be affected by the proposed combination. The same may be addressed to the Secretary, Competition Commission of India, Competition Commission of India, 9th Floor, Office Block – 1, Kidwai Nagar (East) New Delhi: 110023, India or through email: secy@cci.gov.in, within ten days from the date of publication of details of the proposed combination," it said.

Bharat Forge is a global provider of safety and critical forged components and solutions to various sectors including automotive, railways, defence, construction, mining, aerospace, marine, and oil & gas. Certain promoters of Bharat Forge, through BF Investments Ltd., have 48.99 per cent and 35.52 per cent equity shareholding in Meritor HVS (India) Limited (MHVSIL) and Automotive Axles Limited (AAL), two joint ventures with Meritor Heavy Vehicle Systems, LLC (acquired by Cummins Inc in 2022), in India.

AAMCPL is a company incorporated in India and is primarily engaged in the business of manufacture and sale of axles for commercial vehicles (CVs) in India.