The CCI approved the acquisition of L&T’s electrical and automation business by Schneider and MacRithchie Investments Pte. Ltd, subject to certain modifications. In order to eliminate the competition concerns, the CCI has ordered the Acquirers to reserve a part of L&T’s installed capacity to offer white labelling services to third party competitors.

This facility would be available in respect of five high market share LV switchgears, which are generally used together in LV panels. Under the white labelling services, the third party competitors can take L&T products on a reasonable price for selling under their own brand, for a period of five years. Subsequently, these competitors can get access to the technology of white-labelled products to manufacture them, for the next five years. To open up their distribution network to competitors, Schneider would revise its commercial policies and remove de facto exclusivity in distribution agreements. Further, Schneider would not discontinue L&T products and not increase their average selling price, for a period of five years.

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