CCI approves acquisition of additional shares of Escorts by Kubota Corporation

The Competition Commission of India (CCI) on Wednesday approved the acquisition of certain additional equity in Escorts Ltd by Kubota Corporation by way of preferential allotment.

"The Competition Commission of India (CCI) approves acquisition of certain additional equity by Kubota Corporation (Kubota/ Acquirer) of Escorts Limited (Escorts/ Target) under Section 31(1) of the Competition Act, 2002," CCI said in a statement.

The proposed transaction involves Kubota's acquisition of certain additional equity shares of Escorts by way of preferential allotment and a mandatory tender offer in compliance with the Securities and Exchange Board of India's norms, according to a statement.

Kubota is an agriculture product manufacturer and offers various machinery. It also offers engineering, procurement, and construction to maintenance, among others.

Escorts is engaged in the business of manufacturing and sale of agri-machinery, construction equipment, and railway equipment in India.

''The Commission approves acquisition of certain additional equity shares of Escorts Limited by Kubota Corporation by way of preferential allotment,'' said the regulator in a tweet.

Earlier, Escorts Ltd had in December approved the preferential allotment of nearly 94 lakh shares to Japan's Kubota Corporation, which was seeking a majority control of the Indian partner and become a joint promoter.