Luthra gets CCI clearance on proposed merger of Hero Investments with Hero Motocorp

Luthra & Luthra has represented Hero MotoCorp Limited (HMCL) and Hero Investment Private Limited (HIPL) in obtaining merger control clearance from the Competition Commission of India (CCI) in relation to the proposed combination wherein HIPL, the investment arm of Hero Group will merge into HMCL pursuant to implementation of scheme of amalgamation..Luthra filed a joint notice before CCI on June 8, 2012 and obtained a clearance from CCI within 11 days of filing its application..Luthra team was led by Head of Competition Law practice G.R. Bhatia along with Senior Associate Karan S. Chandhiok and Associate Nidhi Singh..The CCI in its Order observed “that the proposed combination relates to amalgamation of an investment holding company of HMCL i.e., HIPL into HMCL and that both the companies are engaged in different business activities, therefore, the proposed combination is not likely to give rise to any adverse effect on competition in India”..CCI further said, “The Commission is of the opinion that the proposed combination is not likely to have an appreciable adverse effect on competition in India and therefore, the Commission hereby approves the proposed combination”..Earlier this month, HMCL had announced that its board had approved the merger of HIPL into HMCL. HIPL is currently part of the promoter group of HMCL and holds approximately 43.33 per cent in HMCL. After the implementation of the scheme of amalgamation, HIPL will cease to exist as an intermediate investment holding company and shareholders of HIPL will directly hold shares in HMCL..Luthra Partner Sundeep Dudeja along with Senior Associate Vaibhav Kakkar and Associates Bhabna Das and Snigdhaneel Satpathy advised HMCL on the transactional aspects of the merger while Senior Partner H.S. Chandhoke along with Managing Associate Kamal Preet Sahni are involved in securing the approval of the scheme of amalgamation from the High Court.