Somic Ishikawa Inc., a Japan-based global leader in automotive suspension components, has completed the acquisition of the balance stake in Somic ZF Components Private Limited from its former joint venture partner, ZF India Private Limited.

With this transaction, Somic ZF Components Pvt Ltd becomes a wholly owned subsidiary of the Somic Group, enhancing its control over Indian operations and aligning strategic goals with global growth plans.

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Parties Involved

Khaitan & Co — Legal Advisory Scope

Khaitan & Co advised Somic Ishikawa Inc. on all aspects of the acquisition, including:

• Negotiation, drafting, and review of transaction documentation

• Limited legal due diligence on the Indian JV entity

• Execution and completion assistance of closing documents

• Multi-specialty advisory across corporate, antitrust, tax, employment, and disputes

Khaitan & Co Deal Team

Core M&A Team

• Zakir Merchant – Partner

• Vidur Sinha – Partner

• Yashashree Mahajan – Partner

• Divakar Gupta – Principal Associate

• Akshita Goel, Sushma Reddy – Senior Associates

• Satoko Kikuta – Consultant

Specialist Teams

Competition / Antitrust

• Anshuman Sakle – Partner

• Rishabh Vohra – Senior Associate

Direct Tax

• Jimmy Bhatt – Partner

• Viraj Doshi – Principal Associate

Indirect Tax

• Mayank Jain – Partner

• Pranay Sahay – Principal Associate

Dispute Resolution

• Kingshuk Banerjee – Partner

• Haabil Vahanvaty – Principal Associate

Corporate & Commercial

• Neil Trivedi – Associate

Employment, Labour & Benefits

• Deepak Kumar – Partner

• Varsha Sankara Raman – Associate

Key Transaction Highlights

• Somic Ishikawa consolidates full ownership of the Indian joint venture.

• The deal is part of a broader strategic alignment in Somic’s global footprint.

• Multi-jurisdictional coordination with tax, regulatory, and employment law implications.

• Reaffirms foreign investor confidence in India’s automotive component manufacturing base.

Strategic Significance

The acquisition allows Somic Ishikawa to streamline operations, integrate supply chains, and bring enhanced technology and quality control to its Indian unit. It also provides the company autonomy over key management, expansion, and operational decisions in one of the world’s fastest-growing automotive markets.

As India continues to serve as a critical manufacturing hub for global auto component suppliers, full ownership structures like this are becoming increasingly common for foreign entities seeking scale, efficiency, and strategic control.

Why It Matters

• Strengthens Somic’s India presence amid rising localization and global supply chain shifts.

• Reflects the growing trend of foreign JVs evolving into wholly owned subsidiaries.

• Highlights the growing complexity of cross-border M&A involving multi-specialty legal and tax advisory.

About the Parties

Somic Ishikawa Inc. is a Japanese Tier-1 auto component manufacturer with expertise in suspension systems, ball joints, and steering linkages, serving major OEMs globally.

ZF India Private Limited is a subsidiary of ZF Friedrichshafen AG, a German multinational involved in driveline and chassis technology.

Somic ZF Components Pvt Ltd was a joint venture formed to manufacture and supply suspension parts for Indian and international markets.

As the Indian automotive ecosystem evolves, foreign partners like Somic Ishikawa are increasingly opting for full control of local operations. This transaction exemplifies the next chapter of consolidation, operational efficiency, and long-term growth in India’s dynamic automotive sector.

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Disclaimer

This article is for informational purposes only and does not constitute legal or financial advice. Readers should consult professionals before making decisions.