The Competition Commission of India (CCI) has provided its nod for the acquisition of shareholding by Hyundai Motor and Kia Motors in Ola Electric Mobility and ANI Technologies.
The Ministry of Corporate Affairs said in a statement that, “CCI approves the acquisition of shareholding in ANI Technologies Pvt Ltd (ANI) and Ola Electric Mobility Pvt Ltd (OEM) by Hyundai Motor Company (HMC) and Kia Motors Corporation (KMC), under section 31(1) of the Competition Act, 2002.”
However, it further added that, the Commission has approved the proposed combination subject to the carrying out of modifications proposed by HMC and KMC, under Regulation 19 (2) of the CCI Regulations, 2011.
Bhavish Aggarwal-led ANI is a ride-sharing company which integrated city transportation for customers and driver-partners onto an online platform. It also ensures convenient, transparent and quick service fulfillment to its customers.
It is also the operator of Ola Electric, which is currently at a nascent stage of operations and envisages operating primarily in the electric vehicles (EV) value chain, with focus on EV charging infrastructure market.
Both, HMC and KMC are a part of the Hyundai Motor Group (HMG), which is engaged in the manufacturing and distribution of automobiles, automobile parts and accessories. It also provides after-sales service to its customers, research and development of automotive engineering across several countries in the world.
Meanwhile, HMC primarily operates in India via its subsidiary Hyundai Motors India Ltd, while KMC operates via its subsidiary Kia Motors India Pvt Ltd.
Earlier in March 2019, the two companies, Hyundai and Kia, had disclosed that they would invest USD 300 million in ride-hailing startup Ola. This partnership is likely to help Ola in intensifying its battle with its close rival Uber, as it is providing cut-throat competition in the Indian market.