CSC-HP deal gets approval from Competition Commission

Post-merger, CSC and HPE shareholders will have 50% stake each in the new entity.

The Dollar Business Bureau 

The merger between Hewlett Packard’s enterprise services segment and Computer Sciences Corporation (CSC) has been met with approval by the Competition Commission of India. The merger would create one of world’s leading pure play IT services companies. The deal which was announced in May specified that Everett-Spinco a wholly-owned subsidiary of HPE that holds the conglomerate’s enterprise service business would merge with CSC. Confirming the news, CSC tweeted that it has approved the, “demerger of  Enterprise Service Business of HPE into Everett Spinco; the latter to become subsidiary of CSC.” 

Post the merger, CSC and HPE shareholders would have around 50% stake each in the new entity. 

Announcing the deal, CSC said, "strategic combination of the two complementary businesses will create one of the world's largest pure-play IT services companies, uniquely positioned to lead clients on their digital transformations.” 

On another trajectory, the CCI has also agreed to a JV between The Japan Steel Works (JSW), Gerdau SA and Sumitomo Corporation to manufacture parts made from special steel for wind power industry. This new JV will require R$280 million in investments to acquire new production equipment. Gerdau will supply the needed assets to set up the production of rolling mill rolls without any cash expenditure. The new project will be located at Gerdau's mill in Pindamonhangaba (São Paulo), Brazil.

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The Dollar Business Bureau - Aug 24, 2016 12:00 IST
 
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