Fair trade regulator allows Tata Electronics to pick majority stake in Apple contract manufacturer Pegatron Tech India

Fair trade regulator Competition Commission of India (CCI) on Tuesday gave the nod to Tata group company Tata Electronics' proposal to pick a majority stake in Pegatron Technology India, a contract manufacturer of US-based technology giant Apple. Tata Electronics will be picking the said stake in two tranches, the regulator said in a statement. Tata Electronics is a wholly-owned subsidiary of Tata Sons.

The competition watchdog also allowed Tata Electronics to transfer of its subsidiary TEL Components' business undertaking to Pegatron India.

According to the fair trade regulator, the proposed combination involves:

• Tata Electronics' proposal to acquire the majority shareholding of Pegatron India in two tranches 
• TEL Components' proposal to transfer its business undertaking to Pegatron India 

The development comes as investors await the onset of a new earnings season on Dalal Street, with Tata group IT major TCS scheduled to report its financial results for the October-December period on Thursday. 

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Pegatron India, a subsidiary of Taiwanese electronics manufacturing firm Pegatron Corporation, is engaged in the provision of electronics manufacturing services for smartphones like Apple Inc. Pegatron India exports its products to North America, Asia and Europe.

In November 2023, Tata Electronics acquired the iPhone unit of Taiwanese company Wistron in Bangalore for $125 million.

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What is Tata Electronics and what does it do?

A wholly-owned subsidiary of Tata Sons, Tata Electronics is a manufacturer of smartphone enclosures, with expertise in manufacturing high-precision components for large customers.

It is also engaged in the provisioning of electronics manufacturing services (EMS) for smartphones.

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