Paloma Rheem Granted Approval for Fujitsu Acquisition by CCI

Deal News | Feb 25, 2025 | EIN

Paloma Rheem Granted Approval for Fujitsu Acquisition by CCI

The Competition Commission of India (CCI) has automatically approved Paloma Rheem Holdings Co. Ltd.'s acquisition of Fujitsu General Limited through the green channel process. This strategic move allows Paloma Rheem to acquire the entire shareholding of Fujitsu, deemed non-problematic due to the absence of competitive overlaps in India. Paloma Rheem, holding significant interests in water heating and HVAC markets globally, aims to strengthen its market presence through Fujitsu's expertise in air conditioning and electronic devices. The CCI under Section 6(4) of the Competition Act, 2002, allows such transactions through the green channel that do not pose competitive risks. The acquisition is anticipated to bolster Paloma Rheem's global reach and aligns with India's pro-business stance on facilitation of mergers and acquisitions that do not harm market competition.

Sectors

  • Manufacturing
  • Electronics
  • HVAC

Geography

  • India – The acquisition was approved by the Competition Commission of India, making local regulatory compliance relevant.
  • Japan – Paloma Co., Ltd. is a leading manufacturer of heating appliances in Japan.
  • Global – Fujitsu General operates globally, influencing international markets in air conditioning and electronics.

Industry

  • Manufacturing – Paloma Rheem is involved in manufacturing of gas water heaters and HVAC systems, while Fujitsu is involved in manufacturing air conditioners and electronic devices.
  • Electronics – The article discusses Fujitsu General, which is engaged in the production and servicing of electronic devices.
  • HVAC – Both Paloma Rheem and Fujitsu have operations related to heating, ventilation, and air conditioning systems.

Financials

    Participants

    NameRoleTypeDescription
    Paloma Rheem Holdings Co. Ltd.BuyerCompanyHolding company involved in the acquisition of Fujitsu General Limited, with operations in water heating, ventilation, and air conditioning sectors.
    Fujitsu General LimitedTargetCompanyThe company being acquired, engaged in manufacturing and servicing air conditioners and electronic devices globally.
    Competition Commission of India (CCI)Regulatory AuthorityGovernmentThe governmental body responsible for granting approval for the acquisition under India's competition laws.