In one of the freshest developments on the merger control front, the Competition Commission of India approved, by its letter dated 25 August 2026, the proposed combination under Section 31(1) of the Competition Act, 2002, whereby Cyient Limited will acquire one hundred per cent of the share capital of TAO Digital Solutions Inc., a Santa Clara-headquartered, AI-native data and product engineering firm, from its existing shareholders. The transaction, first announced in May 2026, is Cyient’s largest acquisition to date, valued at an enterprise value of approximately USD 218 million. Roughly sixty per cent of that sum, some USD 130 million, is payable upfront at closing, with the balance structured as two performance-linked earnout tranches spread over the two years following completion and tied to EBITDA growth. TAO Digital, founded in 2022 and roughly 3,500 people strong, reported revenue of around USD 80 million in 2025 with an EBITDA margin north of twenty per cent, and counts the automotive, hi-tech and health-technology sectors among its principal client bases.
In a separate order issued the same day, the Commission also cleared the acquisition of one hundred per cent of the equity interest and warrants in Kestrel Coal Group Pty Ltd by Yancoal Australia Ltd. Taken together, these approvals illustrate the Commission’s continuing, business-as-usual scrutiny of cross-border and domestic combinations under the Competition Act, weighing each transaction’s likely effect on competition in the relevant Indian markets before giving it the nod. For Cyient, the clearance removes a significant regulatory hurdle standing between agreement and completion, with the deal now expected to close on or before 30 September 2026, subject to the usual customary conditions.