The Competition Commission of India has approved Tata Electronics' acquisition of a majority stake in Pegatron India, which will occur in two tranches and includes the transfer of TEL Components' business to Pegatron India.
Pegatron India's Chennai facility, with 10,000 workers and an annual production capacity of 5 million iPhones, will become Tata's third iPhone manufacturing unit in India, following their USD 125 million acquisition of Wistron's Bangalore facility.
The acquisition strengthens Tata's position in Apple's manufacturing ecosystem and enhances India's role as a global electronics manufacturing hub, with expected benefits for job creation and economic growth.
Inc42 Daily Brief
Stay Ahead With Daily News & Analysis on India’s Tech & Startup Economy
The Competition Commission of India (CCI) has approved Tata Electronics Private Limited’s (TEPL) proposal to acquire a majority stake in Pegatron Technology 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 announced on its official X handle.
The acquisition will take place in two tranches, as per CCI statement. Additionally, the antitrust regulator has approved Tata Electronics’ plan to transfer the business undertaking of TEL Components, a wholly-owned subsidiary of TEPL, to Pegatron India.
Pegatron India, a subsidiary of Taiwan’s Pegatron Corporation, currently operates a factory in Chennai with an annual production capacity of approximately 5 million iPhones. The facility employs around 10,000 workers and manufactures smartphones for both domestic and export markets across North America, Asia, and Europe.
This acquisition represents a significant expansion of Tata’s presence in Apple’s manufacturing ecosystem in India. TEPL, a wholly-owned subsidiary of Tata Sons specializing in high-precision components manufacturing, already operates in the electronics manufacturing services (EMS) sector through Tata Electronics Systems Solutions (formerly Wistron Infocomm Manufacturing India).
The deal follows Tata’s previous strategic move which was approved by the CCI in January last year, when it acquired Wistron’s iPhone manufacturing unit in Bangalore for USD 125 million. With this latest acquisition, Tata Electronics will control its third iPhone manufacturing facility in India.
The CCI’s approval was necessary as the deal’s size exceeded the regulatory threshold that requires clearance from the competition watchdog, which monitors unfair business practices and promotes fair competition in the marketplace.
The development is expected to create more jobs and contribute to India’s economic growth while enhancing the country’s role in the global electronics supply chain.
{{#name}}{{name}}{{/name}}{{^name}}-{{/name}}
{{#description}}{{description}}...{{/description}}{{^description}}-{{/description}}
.svg){kind=logo}
Note: We at Inc42 take our ethics very seriously. More information about it can be found here.