Competition Commission of India (CCI), the fair trade regulator, has permitted JSW for the purchase of HeidelbergCement India’s grinding facility at Raigad, Maharashtra.
HeidelbergCement is a multinational company of building materials, headquartered in Heidelberg, Germany. In 2010, it was the world’s largest cement producer, the market leader in aggregates and ready-mix concrete.
In Oct 2013, JSW Steel has executed a business transfer agreement for purchase of HeidelbergCement India’s plant. Its Raigad, Maharashtra based plant has a capacity of 0.6 MnT pa cement grinding facility.
JSW Steel, belonging to the JSW group, is a part of the O P Jindal Group. It is one of the lowest cost steel producers in the world. The group has diversified interest in mining, carbon steel, power, industrial gases, aluminum, cement and information technology.
“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 adverse effect on competition in India and therefore, the Commission hereby approves the proposed combination,” CCI said in its order dated 12 Dec, 2013.
The Raigad facility has a capacity to produce 0.6 MnT pa. CCI believes that the cement plant acquired by JSW Steel, will not increase the cement production capacity of JSW group to a greater extent. JSW Cement, which is a part of the JSW group, is a relatively new player in the cement industry.
Last month, the fair trade regulator had asked JSW Steel to eradicate certain defects and provide information on the same, which was provided by the company, based on which approval is accorded.