The Competition Commission of India (CCI) has granted approval through the automatic route for Bosch Group’s proposed $8 billion acquisition of sole control over Johnson Controls International’s (JCI) residential and light commercial heating, ventilation, and air-conditioning (HVAC) business.
The transaction also involves Bosch acquiring 100 per cent of the Johnson Controls-Hitachi Air Conditioning Holding (UK) Limited (JCH) joint venture, including Hitachi’s 40 per cent stake.
The $8 billion mega transaction, filed under the Green Channel route, signifies a strategic move for Bosch to expand its presence in the HVAC sector globally.
The deal involves Bosch, a global technology solutions provider headquartered in Gerlingen, Germany, taking over JCI’s HVAC business. Bosch operates in multiple divisions, including Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology.
The acquisition will allow Bosch to further enhance its heating, cooling, and home comfort solutions under its Energy and Building Technology segment, although Bosch Home Comfort currently does not offer heating and cooling solutions in India.
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JCI, headquartered in Cork, Ireland, is a publicly listed multi-industrial company specializing in engineering, manufacturing, and commissioning building products and systems, including residential and commercial HVAC equipment, industrial refrigeration systems, controls, security systems, fire detection, and fire suppression solutions. JCH, established in 2015 as a joint venture between JCI and Hitachi Ltd., is headquartered in Tokyo, Japan, and specialises in air conditioning and cooling technology.
As per regulatory requirements, the acquisition was notified under Section 5(a)(i) of the Competition Act, 2002. The parties notified CCI stating that the transaction does not lead to horizontal overlaps, vertical, or complementary relationships between the activities of the parties in India.
Given the absence of any potential adverse impact on competition in the Indian market, the deal was cleared under the Green Channel route in accordance with Section 6(4) of the Competition Act, 2002, read with Rule 3 of the Competition (Criteria of Combination) Rules, 2024.
The approval under the automatic route ensures a swift regulatory process, allowing Bosch to proceed with the acquisition without additional scrutiny. The transaction underscores Bosch’s strategic commitment to strengthening its foothold in the global HVAC industry while ensuring compliance with competition regulations.