Competition Commission of India Approves JV Between 3 Japanese Firms

Trio Triumph: Competition Commission of India Approves JV Between 3 Japanese Firms

The Competition Commission of India has given approval for a JV between 3 Japanese firms namely Fujitsu, Panasonic and Development Bank of Japan. The entity/organisation formed by this JV will engage in large scale integration design and development of several logic integrated circuit products in the country. A subsidiary of Fujitsu will provide the JV with considerable and required assets for conducting commercial operations.

Fujitsu and FSL or Fujitsu Semiconductor Ltd and Panasonic had formed an agreement for a JV earlier in the year and signed an agreement with the Development Bank of Japan for financing the JV.

Panasonic is the only entity engaged in the distribution of logic ICs within the nation which has been considered insignificant for other major companies in the nation, according to CCI which has henceforth been approved by the nation watchdog. Panasonic is currently engaged in the development and engineering of new technologies in the field of electronics within different sectors.

Continued interest in Indo-Japan relations has been given a boost with the PM’s recent visit to Japan. Japanese companies have said they will be investing over USD 35 billion in India. CCI has approved the JV between the 3 Japanese entities, saying that the JV does not pose threat to competition in fair ways. Fujitsu and Panasonic have a presence in the country though the Development Bank of Japan currently does not.

The Development Bank of Japan is owned by the Japanese government. "As regards Panasonic, as per the information provided in the notice, the only affiliate that sells semiconductor/logic IC products into India is Panasonic Asia Pacific based in Singapore, which has insignificant sales of semiconductor/ logic IC products in India," CCI noted in a statement recently.

An agreement for the JV had already been inked between the 3 companies earlier and the financing agreement ale underwent execution between Fujitsu, FSL, Development Bank of Japan and Panasonic. An order released by the Competition Commission of India also said the “proposed combination is not likely to have an appreciable adverse effect on competition in India”. The Commission also noted that Fujitsu and it subsidiary do not have sales of logic IC products in India within the preceding two financial years.

"As regards Panasonic, as per the information provided in the notice, the only affiliate that sells semiconductor/logic IC products into India is Panasonic Asia Pacific based in Singapore, which has insignificant sales of semiconductor/ logic IC products in India," CCI said in an official statement. Indo-Japan relations have never been stronger than they are now and the future for the bilateral ties between the two nations shines bright.