CCI Seeks Public Comments on Bharat Forge’s Proposed Acquisition of AAM India Manufacturing Corporation

As part of its regulatory process, the CCI has directed the parties involved to publish details of the acquisition for public review and invite feedback from stakeholders and concerned individuals.

The Competition Commission of India (CCI) has called for public comments regarding the proposed acquisition of AAM India Manufacturing Corporation Private Limited (AAMCPL) by Bharat Forge Limited (BFL). The Commission has expressed preliminary concerns that the combination could have an appreciable adverse effect on competition within the relevant market. As part of its regulatory process, the CCI has directed the parties involved to publish details of the acquisition for public review and invite feedback from stakeholders and concerned individuals.

Overview of the Proposed Combination

The proposed transaction involves Bharat Forge Limited acquiring 100% shareholding and full control over AAMCPL, including the e-axle assembly lines that AAMCPL will acquire from AAM Auto Component (India) Private Limited (AAM Auto). Collectively, Bharat Forge Limited and AAMCPL are referred to as ‘Parties’ in this matter.

BFL is a global leader in safety and critical forged components catering to multiple industries, including automotive, defense, railways, construction, aerospace, mining, marine, and oil & gas sectors. The company has established itself as a major player in the manufacturing and supply of high-performance engineered components worldwide.

AAMCPL, a company incorporated in India, is engaged in the manufacture and sale of axles for commercial vehicles (CVs) across the country. The transaction has raised competitive concerns due to potential overlaps and common shareholding interests in the commercial vehicle axle manufacturing market.

Concerns Raised by the Competition Commission of India

The CCI has taken a prima facie stance that the acquisition might significantly impact competition in the relevant industry. Bharat Forge, through its investment arm BF Investments Ltd., holds equity stakes in two joint ventures (Affiliate JVs) with Meritor Heavy Vehicle Systems, LLC (now owned by Cummins Inc. since 2022). These joint ventures, Meritor HVS (India) Limited (MHVSIL) and Automotive Axles Limited (AAL), also operate in the same market segment as AAMCPL. The presence of these affiliate JVs in the axle manufacturing space, combined with BFL’s acquisition of AAMCPL, has prompted concerns over potential anti-competitive effects, including market dominance, reduced competition, and potential price control.

Under Section 29(2) of the Competition Act, 2002, the Commission has instructed the parties to disclose details of the transaction publicly. The purpose of this disclosure is to ensure transparency and to provide an opportunity for stakeholders and individuals potentially impacted by the acquisition to submit their views.

Public Notice and Invitation for Comments

In compliance with the CCI’s directive, details of the proposed combination were published in leading national newspapers—including Mint, The Financial Express, Hindustan Times, and The Indian Express—on March 19, 2025. Additionally, information regarding the acquisition is available on the official websites of both Bharat Forge and AAMCPL, as well as on the CCI website (www.cci.gov.in).

As per Section 29(3) of the Competition Act, 2002, the CCI is now inviting public comments, objections, and suggestions in writing from any individuals, businesses, or stakeholders who may be adversely affected by the proposed acquisition.

The comments may be submitted via post or email within ten (10) days from the date of publication of the transaction details. All written responses should be directed to:

Secretary, Competition Commission of India Competition Commission of India 9th Floor, Office Block – 1, Kidwai Nagar (East), New Delhi: 110023, India Email: secy@cci.gov.in

It is important to note that the Commission will not consider objections that are unsubstantiated or lacking in proper evidence. Therefore, respondents are encouraged to provide well-reasoned, fact-based feedback supported by data or industry insights.

Potential Market Impact and Next Steps

Given the significant role Bharat Forge and AAMCPL play in the commercial vehicle axle market, industry analysts and competitors are closely monitoring the review process. If the CCI determines that the proposed acquisition would result in unfair market practices or significantly harm competition, it may order modifications to the transaction, impose conditions, or even reject the acquisition.

The upcoming public consultation phase is expected to provide further clarity on the market implications of this deal. Industry stakeholders, such as rival manufacturers, suppliers, and fleet operators, may weigh in on potential concerns related to pricing, supply chain disruptions, and reduced market competition.

Once the feedback period concludes, the Commission will conduct a detailed assessment of the submissions and decide whether to approve the acquisition, seek modifications, or block the deal altogether.

 

The Competition Commission of India’s decision to scrutinize this acquisition underlines its commitment to maintaining fair competition in key industrial sectors. With Bharat Forge’s growing presence and AAMCPL’s established market position, this deal could reshape the competitive landscape of commercial vehicle components in India.

Public participation in the review process is crucial to ensuring a balanced and well-informed decision. Affected businesses and individuals are encouraged to present their views before the deadline to contribute to a fair regulatory outcome. The final decision from the CCI will set a precedent for future mergers and acquisitions in the commercial vehicle manufacturing sector.