Fair trade regulator, Competition Commission of India (CCI) has approved Japan-based Daido Steel’s proposed 10 per cent stake purchase in Sunflag Iron and Steel Company.
In an order released today, the CCI said that “the proposed combination is not likely to have an appreciable adverse effect on competition in India”.
Sunflag manufactures special alloy steel, stainless steel, micro alloyed steel, special carbon steel and bearing steel, while Daido is into making speciality steel, among others.
As per a ‘Share Subscription Agreement’ entered on July 9, this year, Daido Steel Co would acquire 10 per cent stake in Sunflag ‘on a fully diluted basis’.
According to CCI, “the overlap between the products and the vertical relationship between the parties is insignificant and would not raise any competition concerns in India”.
The fair trade regulator observed that Daido and its group firms do not manufacture steel in India and only exports mechanical construction steel and stainless steel to its subsidiary Daido Kogyo India Private Ltd for sale in India.
It also noted that previously Sunflag had entered into agreement with Daido in 2010 for advisory support and technical assistance for selection and installation of special steel making equipment and plant expansion.
Besides, Sunflag had also entered into a non-exclusive licence agreement with Daido in 2012 to use its technology for manufacture of speciality steel bars for supplying it to an automobile company in India as well as a pact in 2013 for making different types of speciality steel bars.
The Commission had received a notice by Daido on August 1 seeking the regulator’s approval on the deal.
Socurce: PTI
- metaljunction »
- Metal News
Metal News & Events
METALJUNCTION PUBLICATIONS
Coal Insights (English) Monthly
Coal Insights is a ready reckoner for anyone associated with coal. This publication is aimed at tracking everything related to coal in India.
India Coal Market Watch(English) Monthly
ICMW is a one-stop source for all news, data and research pertaining to coal demand, consumption, stocks, spot- and long-term prices with respect to the Indian Market.
India Steel Market Watch (English) Monthly
ISMW is a brand new high-end steel market report, covering all aspects of the steel industry in India.
Steel Insights(English) Monthly
Steel Insights delves into various facets of the domestic and global steel industry such as market fundamentals, raw material price trends, price forecasts etc.