Dixon Tech Gets CCI Nod To Acquire Aditya Infotech

Dixon Technologies (India) Ltd proposal to acquire a stake in Aditya Infotech Ltd. recieved approval from the Competition Commission Of India.

Dixon Technologies is involved in the business of providing Electronic Manufacturing Services.

The fair trade regulator also approved the acquisition of a stake in AIL Dixon Technologies by Aditya Infotech Ltd.

"Commission approves the subscription of certain shares of Aditya Infotech Ltd (AIL) by Dixon Technologies (India) Ltd and the acquisition of certain shares of AIL Dixon Technologies Pvt Ltd by AIL," CCI said in a post on X.

AIL Dixon Technologies is a joint venture between AIL and Dixon Technologies India, specializing in the manufacturing and assembly of Energy Storage Systems (ESS). In Fiscal 2024, the joint venture achieved a revenue of Rs 632.62 crore.

Aditya Infotech, an unlisted public company, focuses on sourcing, distributing, and marketing electronic security systems under the brand CP Plus. For the financial year ending March 2023, it reported a revenue of Rs 2,298 crore.

In July, Dixon Technologies (India) announced its plans to divest its entire 50% stake in the JV company AIL Dixon Tech to Aditya Infotech.

As part of the transaction, Dixon said it has signed a share subscription and purchase agreement with AIL to acquire a 6.5% stake in the company in exchange for the divestment.

Deals beyond a certain threshold require clearance from the regulator, that is meant to police unfair business practices as well as promoting fair competition in the marketplace.

(With Inputs From PTI)