Rane Holdings Gets CCI Approval for Acquiring 51% Stake in Steering Systems

Founded in 1929 and headquartered in Chennai, India, Rane Holdings Limited (RHL) serves as the parent company of the Rane Group and holds its trademark rights.The company has recently received approval from the Competition Commission of India (CCI) to acquire the remaining 51% stake in its joint venture, Rane NSK Steering Systems Pvt. Ltd. (RNSS). The stake is being acquired from NSK Ltd., a Japanese company. The CCI granted its approval through a letter dated September 3, 2024, confirming the decision during a meeting on the same day, according to the filing.

The deal will make RNSS a wholly-owned subsidiary of Rane Holdings, and the company will be renamed Rane Steering Systems Pvt. Ltd., subject to necessary regulatory approvals. The acquisition cost is estimated at around Rs.45 crore, with RHL purchasing 91.29 lakh shares at Rs.10 each from NSK Ltd.

Continued Collaboration & Plans

Even with the ownership change, Rane Steering Systems will continue its existing technology licensing and supply agreements with NSK Steering & Control, Inc. So, while things are shifting on paper, the collaboration that’s been in place for over 25 years will still be there. Harish Lakshman, chairman of Rane Group, called out the importance of their relationship with NSK, saying it has played a big role in Rane’s strong presence in the Indian automotive steering market. He also pointed out that this acquisition will give the group even more expertise in the steering systems sector.

Market Response

Investors responded positively to the news, with Rane Holdings’ shares climbing around 2% to close at Rs.2,060 on the Bombay Stock Exchange (BSE). This contrasted with the BSE Sensex, which saw a slight dip for the day.

Conclusion: In conclusion, Rane Holdings’ acquisition of Rane NSK Steering Systems feels like the start of an exciting new chapter. With complete control and a decades-long partnership with NSK still in play, how things are going to turn out is going to be interesting to watch. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.