The Competition Commission of India (CCI) has granted automatic approval to Paloma Rheem Holdings Co. Ltd.’s acquisition of Fujitsu General Limited under the green channel route.
The transaction, which involves Paloma Rheem acquiring the entire shareholding of Fujitsu, was deemed non-problematic as there are no competitive overlaps between the two entities in India.
Paloma Rheem, the acquiring entity, is a holding company of Paloma Co., Ltd., a leading manufacturer of gas water heaters and stoves in Japan, and Rheem Manufacturing Company, which operates in the water heating, ventilation, and air conditioning sectors across North America, South America, Europe, and Australia.
On the other hand, Fujitsu General is engaged globally in developing, manufacturing, sales, and servicing air conditioners, information and communication systems, and electronic devices.
Given that the transaction does not result in any horizontal, vertical, or complementary overlaps in the Indian market, it qualified for CCI’s Green Channel route under Section 6(4) of the Competition Act, 2002, read with Rule 3 of the Competition (Criteria of Combination) Rules, 2024. This provision allows automatic approval for combinations that do not pose any competition concerns in the country.
The acquisition is expected to strengthen Paloma Rheem’s global footprint, allowing it to tap into long-term growth opportunities through Fujitsu’s established expertise in air conditioning and electronic devices.
While the deal is a strategic expansion for the acquirer, it remains neutral from an Indian competition law perspective, ensuring seamless regulatory clearance.
With this automatic approval, the transaction now moves forward without any regulatory roadblocks, reinforcing India’s pro-business approach to facilitating mergers and acquisitions that do not threaten market competition, economy watchers said.
