The Competition Commission of India (CCI) has approved the acquisition of C&S Electric by Siemens, a release by CCI.
The proposed combination envisages acquisition of 100 per cent of the share capital of C&S Electric Ltd (C&S) by Siemens Ltd (Siemens India). The detailed order by CCI is awaited.
At the time of closing of the proposed combination, the scope of business of C&S shall include low-voltage (LV) switchgear components and panels, LV and medium voltage (MV) power busbars as well as protection and metering devices of C&S.
Certain other businesses of C&S, such as MV switchgear and package substation, lighting, diesel generating sets, engineering, procurement and construction business and the “Etacom” busbars business will be retained by the existing promoters of C&S.
Siemens India focuses on the areas of power generation and distribution, intelligent infrastructure for buildings and distributed energy systems, and automation and digitalization in the process and manufacturing industries. It also supplies smart mobility solutions for rail and road transport and infrastructure solutions for Smart Cities.
C&S manufactures a range of electrical switchgear, power protection and electrical distribution products. C&S also has an electrical contracting business which performs turnkey solutions for industrial and commercial electrification, substations and power plants. In addition, C&S is also engaged in the design and execution of grid connected solar photovoltaic power plants.
A stock exchange filing by Siemens confirmed the above development, adding “The proposed acquisition is still subject to receipt of other approvals and fulfilment of condition precedents as agreed between the parties.”
The agreement
It may be recalled that Siemens Ltd, on January 24, 2020, signed an agreement to acquire New Delhi-based C&S Electric Ltd. The acquisition of one of the leading providers of electrical and electronic equipment for infrastructure, power generation, transmission and distribution, will strengthen Siemens’ position as a key supplier of low-voltage power distribution and electrical installation technology in one of the world’s fastest-growing economies, a release from Siemens said.
Under the agreement, Siemens Ltd. will acquire approximately 99 per cent of the equity share capital of C&S Electric Ltd for around Rs.2,100 crore. Closing of the acquisition is subject to regulatory approvals. In the future, Siemens envisions this partnership to pave the way for the establishment of a design and manufacturing hub in India, supporting the export of electrification solutions to fast-developing markets around the world.
Etacom
In December 2011, C&S Electric acquired Netherlands-based Etacom ISD BV for around Rs.139 crore. Etacom ISD BV is Dutch holding company for Etacom Group that specialises in manufacturing insulated busbars. The acquisition was done through C&S Electric’s subsidiary C&S Electric International BV.
Featured photograph shows C&S Electric’s busduct manufacturing plant located at Noida, Uttar Pradesh. C&S Electric has 18 manufacturing plants including two overseas (China and Belgium). The 16 domestic plants are spread over Uttar Pradesh and Uttarakhand. There is only one plant located in Assam.
