Essar Steel-Inox deal gets CCI green signal

Fair trade regulator CCI has cleared Essar Steel's proposed sale of a gas plant in Gujarat to Inox Air Products, saying the deal does not raise adverse competition concerns in the country.

As per the deal, Ruias-promoted Essar Steel will transfer its gas plant located at Hazira, Gujarat to Inox on a slump sale basis.

In an order dated January 30, the Competition Commission of India (CCI) said that "the proposed combination is not likely to have an appreciable adverse effect on competition in India".

The Commission noted that in terms of a agreement between Essar Steel and Inox, a guaranteed quantity of the industrial gases produced at the Hazira gas plant Essar Steel "on job work and long term basis, would be provided to Essar Steel, by Inox AP, post combination".

"The proposed acquisition of the gas plant at Hazira, will also not increase, in any significant manner, the capacity of Inox AP for producing and selling industrial gases, in India," CCI said in the order.

Essar Steel, as part of its business activity of steel manufacturing has a gas plant which produces oxygen, nitrogen, and argon gases.

The gases produced in the units located at Hazira plant are primarily used for the purpose of captive consumption in steel manufacturing by Essar Steel.

Inox Air Products is engaged in the business of manufacturing and supplying industrial gases across India.

Pursuant to execution of a 'Business Transfer Agreement (BTA)' with Essar Steel on December 24, 2013, Inox has sought clearance of the deal with CCI.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The economic survey falls in step with the BJP’s election manifesto

    It’s always tough to find something wrong with the annual economic survey as it only articulates the government’s desire to set its house in order

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Why higher education needs innovation

India is such a great country that it creates complexity ...

Zehra Naqvi

We must overcome the fear of death

It is the biggest irony that the only thing that’s ...

Dharmendra Khandal

Jawai leopards and locals can coexist peacefully

At first glance, the Jawai landscape seems like a large ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture