Fair trade regulator Competition Commission of India on Tuesday approved the purchase of a majority stake in Sanmina-SCI India Pvt. Ltd. by Reliance Strategic Business Ventures Ltd.
The proposed transaction relates to the acquisition of up to 50.1% stake in Sanmina-SCI India Pvt. Ltd. by Reliance Strategic Business Ventures Ltd., according to a CCI release.
In March, Reliance Industries' subsidiary RSBVL and Sanmina Corporation announced the setting up of an electronic manufacturing joint venture in India that will focus on hi-tech infrastructure hardware across diverse sectors, including communications networking, defence and aerospace.
RSBVL will hold a 50.1% stake in the joint venture while Sanmina will have 49.9% shareholding. The latter will obtain this ownership primarily through an investment of up to Rs 1,670 crore in new shares in Sanmina's existing Indian entity.
SCIPL is an indirect subsidiary of U.S.-based Sanmina Corporation and is a leading integrated manufacturing solutions company, while RSBVL is a subsidiary of Reliance Industries Ltd. which holds strategic investment interests in businesses and providing business support services.
Deals beyond a certain threshold require approval from CCI which keeps a tab on unfair business practices in the marketplace
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