New Delhi: The Competition Commission has approved medical equipment firm Wipro GE Healthcare's proposeddeal to acquire GE group's assets related to bio-technology and life sciences.
According to the Competition Commission of India (CCI), "the proposed combination is not likely to have appreciableadverse effect on competition in India". Under the deal, Wipro GE would acquire assets of GE India Technology Centre -- part of US-headquartered conglomerate General Electric group -- used in the research areas of bio-technology and life sciences.
The Commission observed that while Wipro GE is engaged in manufacturing and distributing various medical equipment and solutions including life sciences equipment and devices, GE India Technology is into multi-disciplinary research and development in various technologies such as bio-technology.
"Accordingly, it is observed that there is no horizontal overlap between the businesses of Wipro GE and GE India Technology Centre Ltd," CCI said in an order released today.
Further, CCI noted that "the proposed combination would facilitate vertical integration of the businesses of Wipro GE as it would enable Wipro GE to sell equipment as well as provide related research and other support services in biotech and life-sciences areas".
"It is also observed that GE India Technology Centre renders 100 per cent of its services to the affiliates of GE group across the world, including India," CCI said.
"Therefore, this vertical integration is unlikely to result in any appreciable adverse effect on competition," the fair trade regulator added.
The 'Asset Purchase Agreement' was entered between the two companies on July 7, 2014 following which they had approachedthe competition commission for approval in the same month.
Updated Date: Aug 30, 2014 10:53 AM