CCI clears Schneider Electric India, MacRitchie's buyout of L&T arm
Updated : June 07, 2019 06:57 AM IST
The Ministry of Corporate Affairs (MCA) in a statement, however, noted that the acquisition could lead to lesser competition in the market. Therefore the CII has ordered the acquirers to reserve a part of L&T's installed capacity to offer white labelling services to third-party competitors.
The approval is subject to modifications that are aimed at eliminating the likely anti-competitive effects of the proposed acquisition.
Under the white labelling services, the third party competitors can take L&T products on a reasonable price for selling under their own brand, for a period of five years, as per the official statement.