Dixon Technologies gets CCI approval to acquire stake in Aditya infotech

11 Sep 2024 , 03:19 PM

On Tuesday, the CCI approved Dixon Technologies’ bid to acquire a stake in Aditya Infotech Ltd.

Dixon Technologies (India) Ltd is in the business of offering Electronic Manufacturing Services (EMS). It offers EMS for a variety of applications, including lights, television, washing machines, security systems, wearables, and hearing aids.

Aditya Infotech Ltd (AIL) also received approval from the regulator to acquire a share in AIL Dixon Technologies. The Commission has approved Dixon Technologies (India) Ltd’s subscription to certain shares of Aditya Infotech Ltd (AIL) and its acquisition of certain shares of AIL Dixon Technologies Pvt Ltd by AIL, according to a CCI post on X.

AIL Dixon Technologies is a joint venture (JV) between AIL and Dixon Technologies India. It is involved in the manufacture and assembly of ESS. In FY24, the JV earned ₹632.62 crore.

Aditya Infotech sources, distributes, and markets electronic security systems under the CP Plus brand name. The unlisted public business reported a revenue of ₹2,298 crore for the fiscal year ending March 2023.

Dixon Technologies (India) announced in July that it intended to sell its whole 50% stake in the joint venture business AIL Dixon Tech to Aditya Infotech.

Dixon said as part of the transaction, it inked a share subscription and purchase agreement with AIL to acquire a 6.5% stake in the firm in exchange for the divestiture.

Deals that above a specific threshold require regulatory permission, which prevents unethical commercial practices while also promoting fair competition in the marketplace.

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