CCI clears purchase of Heidelberg's Raigad unit by JSW Steel
The Competition Commission of India (CCI) has approved the acquisition of Heidelberg Cement India's grinding facility at Raigad, Maharashtra, by JSW Steel.
JSW Steel in October acquired Heidelberg Cement India's 0.6-mtpa (million tonnes per annum) cement grinding facility in Raigad on a slump sale basis.
"Considering the facts on record and the details provided in the notice (under relevant Section of the Competition Act) ...the Commission is of the opinion that the proposed combination is not likely to have appreciable adverse effect on competition in India and therefore, the Commission hereby approves the proposed combination," fair trade regulator CCI said in its order dated December 12.
As per CCI, the Raigad undertaking, having a capacity to produce only 0.6 mtpa, once acquired by JSW Steel, "will not substantially increase the total cement production capacity of the JSW group".
It also said that JSW Cement, which is a part of the JSW group and manufactures and sells different varieties of cement similar to that of Heidelberg Cement India Ltd, is a relatively new player in the cement industry.
Last month, the fair trade regulator had asked JSW Steel to remove certain defects and provide information on the same, which was provided by the company.
In May 2013, both the companies had announced the deal, saying JSW Steel will acquire the Raigad cement grinding facility of Heidelberg Cement India in Maharashtra.
