Fair trade regulator CCI has approved Jaiprakash Associates proposed sale of its Haryana's cement grinding unit to Shree Cements, saying the deal will not raise anti-competition concerns in the country.
The proposed deal involves transfer of a 1.5 million tonnes per annum (MTPA) capacity cement grinding unit at Panipat in Haryana owned by Jaiprakash Associates to Shree Cements "on a going concern basis by way of a slump sale". In an order released today, the Competition Commission of India (CCI) said that "the proposed combination is not likely to have an appreciable adverse effect on competition in India in any of the relevant market(s)".
The Commission noted that the market shares in terms of installed capacity is 23 percent for Shree Cements and three percent for cement grinding. This will increase the market share of Shree Cements to 26 percent post the combination. "The market is moderately concentrated but the change in market concentration as indicated by incremental HHI (Herfindahl-Hirschman Index) would not be significant," CCI said.
The Commission had received a notice filed by Shree Cements on September 22, 2014, pursuant to execution of the business transfer agreement between the company and Jaiprakash Associates on September 19, the same year.
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