Rane Holdings Ltd has secured approval from the Competition Commission of India (CCI) to acquire the remaining 51% stake in Rane NSK Steering Systems Pvt. from its joint venture partner, NSK Ltd. of Japan. The CCI granted its endorsement for this acquisition in a letter dated September 3, 2024. The decision was confirmed at the Commission’s meeting on the same day, as reported in an official exchange filing by the company.
Upon completion of this acquisition, Rane NSK Steering Systems Pvt. will become a fully-owned subsidiary of Rane Holdings Ltd. The company is also set to undergo a rebranding and will be renamed Rane Steering Systems Pvt., contingent upon receiving the necessary regulatory approvals. This transition marks a significant step for Rane Holdings as it consolidates its position in the automotive steering systems market.
Rane Holdings Ltd. has indicated that it will maintain its current technology license and supply agreements with NSK Steering & Control, Inc. This continuity is vital as it supports the ongoing collaboration that has been instrumental in the company’s success. Harish Lakshman, Chairman of the Rane Group, emphasized the importance of the long-standing relationship with NSK, which has spanned over 25 years.
He highlighted that this partnership has significantly contributed to Rane’s strong foothold in the Indian automotive steering sector. Lakshman expressed confidence that this acquisition will further enhance the group’s capabilities and expertise in steering systems. In response to this positive development, shares of Rane Holdings saw a notable increase.
The stock closed at Rs 2,069.00 per share on the Bombay Stock Exchange (BSE), marking a rise of 2.26%. This was a significant uptick compared to the BSE Sensex, which experienced a slight decline of 0.25% on the same day. This upward movement in Rane Holdings’ share price reflects investor optimism and confidence in the company’s strategic expansion and future prospects.
Overall, the approval and subsequent acquisition signify a major milestone for Rane Holdings Ltd., reinforcing its commitment to growth and innovation in the automotive industry. By fully integrating Rane NSK Steering Systems Pvt., the company is poised to leverage its expanded expertise and strengthen its competitive edge in the market.
Rane Holdings Ltd. is a prominent Indian automotive components manufacturer, specializing in steering systems, suspension products, and braking systems. With a robust presence in the automotive industry, Rane Holdings is renowned for its technological innovation and quality. The company operates through various subsidiaries and joint ventures, catering to both domestic and international markets.
