CCI Approves Elliott-Managed Funds' Proposed Stake Purchase In Toyota Industries

The Competition Commission of India (CCI) has approved a proposal involving the acquisition of equity shares and voting rights in Toyota Industries Corporation by funds managed by US-based Elliott Investment Management.

Under the approval, Elliott Associates L.P., Elliott International L.P. and The Liverpool Limited Partnership will acquire shares of Toyota Industries through on-market purchases on the Tokyo Stock Exchange and the Nagoya Stock Exchange. As the transaction involves the acquisition of shares carrying voting rights, it was notified to the Commission under the Competition Act, 2002.

Elliott Investment Management, which manages and advises the acquiring funds, is headquartered in Florida in the United States. According to the filing, the firm follows a multi-strategy investment approach covering equity-oriented strategies, private equity and private credit, distressed and non-distressed debt, hedge and arbitrage strategies, real estate-related securities, and commodities.

Toyota Industries Corporation is listed on the Tokyo Stock Exchange and the Nagoya Stock Exchange. It is engaged in the manufacture and sale of automobiles, material handling equipment such as lift trucks and automated logistics solutions, and textile machinery.

In their submission, the acquirers stated that the proposed acquisition is an investment transaction and does not involve any change in control or management of Toyota Industries. They also submitted that there is no overlap between the activities of acquiring funds and those of the target in India.

Toyota Industries is active in India through the manufacture and sale of material handling equipment and through the provision of engineering design services. The acquiring funds do not have any business operations in these segments in India.

After examining the notice, the Competition Commission concluded that the proposed transaction is not likely to cause any appreciable adverse effect on competition in India and approved the acquisition.