CCI approves JSW's acquisition of up to 38% stake in MG Motor India
Competition Commission of India (CCI) on January 23 approved JSW Ventures Singapore's acquisition of up to 38 percent of MG Motor India, as per an order statement. "The Commission approved the acquisition by JSW Ventures Singapore Pte. Limited (Acquirer), for up to approximately 38% of the share capital of MG Motor India Private Limited (Target).
Detailed order of the Commission will follow," it said. JSW Ventures Singapore is a newly incorporated entity which is a wholly owned subsidiary of JSW International Tradecorp and belongs to JSW Group. First reports of the acquisition broke in June 2023 and it was anticipated that Sajjan Jindal would possess approximately 45-48 percent ownership in MG Motor India, while dealers and Indian employees are likely to hold 5-8 percent.
According to a senior government official, “It will become an Indian entity, instead of a Chinese one, with an eventual India listing in the next few years." As part of this transition, the top management and board of the company will have a larger share of Indians. MG Motor offers various models such as the Comet and ZS electric vehicles, in addition to the Astor, Hector, and Gloster. Despite being owned by a Chinese company, MG Motor aimed to highlight the British heritage of the MG brand during its launch in 2019, employing actor Benedict Cumberbatch as a brand ambassador.
In December it was reported that JSW Group would own 35 percent in a newly created joint venture (JV) with SAIC Motor Corp. Ltd (which owns MG Motor India) that would focus on electric vehicles (EVs), with a plan to turn majority shareholder in two years. JSW executives said the rest of the ownership of the JV has not been decided yet, but the JV would help transform MG Motor’s
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