KKR-Alliance Tire deal gets Competition Commission nod

NEW DELHI: Fair trade regulator CCI has approved the proposed between entities related to global investment firm KKR and Netherlands-based Alliance Tire Group B V, saying the transaction would not have any adverse impact on competition in the Indian market.

The combination relates to the acquisition of 87.48 per cent of the equity shareholding and 97.76 per cent of the preference shareholding in Alliance Tire Group B V by KKR Dutch and KKR Auxiliary.

Alliance Tire Group, through its subsidiaries, is in the business of developing, manufacturing and supplying a range of off-highway tires for the agricultural, forestry, construction and earthmoving markets.

In India, the entity operates through its indirect wholly-owned subsidiary -- ATC Tires Private Ltd (APTL) -- which is also engaged in the manufacturing of tires.

As per the details provided to the Competition Commission of India (CCI), neither KKR nor any of its group companies is engaged in the business of tires in India.

Post the deal, there would also not be any vertical relationship between ATV BV and KKR or any of its group companies, in India. Further, ATPL is primarily into export of tires and its sales in India are relatively insignificant.

"In view of the foregoing, the proposed combination is not likely to give rise to any adverse competition concern in India," CCI said in its order dated May 7.

Meanwhile, KKR Auxiliary is a wholly-owned subsidiary of KKR Dutch, which in turn is indirectly held by KKR Asian Fund LP. The Fund is affiliated with and advised by US-based global investment firm Kohlberg Kravis Roberts & Co LP.