27 May, 2015
On March 30, 2015, CCI approved the merger between MeadWestvaco Corporation (‘MWV’) and Rock-Tenn Company (‘RKT’). The transaction was notified to CCI pursuant to a business combination agreement (‘BCA’) executed between MWV and RKT. RKT incorporated Rome Milan Holdings (‘RMH’), which in turn incorporated RKT Merger Sub and MWV Merger Sub.
CCI observed that the transaction was a global transaction involving (a) merger of RKT Merger Sub with RKT; and (b) merger of MWH into MWH Merger Sub, and MWH Merger Sub would continue as a wholly owned subsidiary of RKT. MWH shareholders would hold 50.1 % of the shareholding of RMH and RKT shareholders would hold 49.9% of the shareholding of RMH.
CCI observed that RKT was engaged in the business of providing packaging solutions and was a manufacturer of containerboard and paperboard in a number of business segments. Further MWH was engaged in the business of providing corrugated packaging solutions to various industries and specialty chemicals for automotive and other industries.
CCI observed that while there was a horizontal overlap between MWH and RKT in relation to the sale of corrugated packaging in India, their combined market share was very low. CCI further observed that there were no horizontal overlaps in the businesses operations of MWH and RKT.
In light of the above, CCI held that the proposed acquisition was not likely to have any AAEC in India and approved the transaction under Section 31(1) of the Competition Act.
For further information, please contact:
Zia Mody, AZB & Partners
zia.mody@azbpartners.com
Abhijit Joshi, AZB & Partners
abhijit.joshi@azbpartners.com
Shuva Mandal, AZB & Partners
shuva.mandal@azbpartners.com
Samir Gandhi, AZB & Partners
samir.gandhi@azbpartners.com
Percy Billimoria, AZB & Partners
percy.billimoria@azbpartners.com
Aditya Bhat, AZB & Partners
aditya.bhat@azbpartners.com
