The Competition Commission of India (CCI) on Tuesday gave its approval for the acquisition of 50.1% stake of Sanmina-SCI India (SCIPL) by Reliance Strategic Business Ventures (RSBVL). RIL is a subsidiary of Reliance Industries. Sanmina Corporation and RSBVL have entered into an agreement to form a joint venture by way of investment in the existing Indian unit of Sanmina (Sanmina SCI India). RSBVL ready to invest 1,670 crore in the joint venture and holds majority stake. The joint venture will operate in both domestic and export markets.
Approving, in a statement, CCI The proposed combination envisages acquisition of 50.1% of the equity share capital of SCIPL by RSBVL.
In March this year, Sanmina entered into an agreement with rsbvl To form the joint venture which will be a world class electronic manufacturing hub in India. The joint venture will prioritize high technology infrastructure hardware for growth markets, and for industries such as communications networking (5G, cloud infrastructure, hyper scale datacenters), medical and health systems, industrial and cleantech, and defense and aerospace.
Additionally, the joint venture is expected to create a state-of-the-art ‘Manufacturing Technology Center of Excellence’ which will serve as an incubation center to support product development and hardware start-up ecosystem in India as well as to promote research Will Work. Innovation of leading technologies.
Under the agreement, RSBVL will hold 50.1% equity stake in the joint venture entity, with the remaining 49.9% held by Samina. The RIL-backed company will acquire this ownership mainly through investments of up to 1,670 crore in new shares in Sunmina’s existing Indian arm, while Sanmina will contribute to its existing contract manufacturing business. That said, the joint venture will be capitalized with more than $200 million in cash for development.
The principal activities of RSBVL are trading in goods, holding strategic investment interests in businesses and providing business support services.
SCIPL is an indirect subsidiary of Sanmina Corporation, a Fortune 500 company headquartered in San Jose, California, United States. Sanmina is a global provider of integrated manufacturing solutions, components, products and repair, logistics, and after-market services. It provides services to original equipment manufacturers primarily in the communications networks, computing and storage, medical, defense and aerospace, industrial and semiconductor, multi-media, automotive and clean technology sectors.
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