Mumbai, India
Tata Group’s acquisition of a stake in rival Vivo’s India enterprise was allegedly stopped by Apple, attributable to Tata proudly owning a manufacturing facility with Apple’s provide chain.
Tata Group, an Indian conglomerate, has reportedly put the brakes on talks to accumulate Chinese language smartphone producer Vivo’s enterprise in India. Vivo needed to promote a 51% stake within the subsidiary to the Tata Group, however that now appears to be in bother.
The sale was an try by Vivo to make its enterprise extra Indian in operation, below stress from the Indian authorities. Nevertheless, it seems that Apple stepped in and killed the plan.
In line with sources ofOccasions of India, Apple was not proud of the prospect of Tata Group proudly owning a majority stake in a rival agency. That is all the way down to the truth that Tata really owns a manufacturing facility that produces Apple merchandise in India.
In 2023, Apple associate Wistron pulled out of its Karnataka manufacturing facility and bought the entire concern to Tata Group for roughly $125 million. Tata continued to provide merchandise for Apple utilizing the ten,000-employee workforce, together with the iPhone.
“This has been one of the key reasons that scuttled the plan,” a supply advised the report. “For Apple, any deal of the Tata group, its key manufacturing ally, with Vivo would have meant a partnership with a competitor.”
A spokesperson for Tata Group denied “this development.”
The alleged actions of Apple to dam a large deal for Tata will trigger the conglomerate to think twice about future selections. Acquisitions that could possibly be seen as competing in opposition to Apple’s many companies might danger Tata dropping its affiliation with the most important tech large in future.
Tata has additionally made strikes to broaden its Apple operations for the reason that Wistron buy. In April, it was nearing a deal to get a controlling stake in a Pegatron facility in Tamil Nadu, India.