21 July, 2015
On May 7, 2015, CCI approved the acquisition of Rohit Ferro Tech Limited’s (‘RFTL’) ferro- chrome producing facility in Odisha by Balasore Alloys Limited (‘BAL’) on a slump sale basis.
BAL is manufactures ferrochrome, while RFTL produces ferro alloys including ferrochrome. Relevantly, RFTL has three ferro alloy production facilities situated across West Bengal and Odi- sha.
CCI assessed the impact of the combination in the market for ferro alloys and ferrochrome in India. It observed that there were a number of competing manufacturers of ferro alloys and ferrochrome in India. CCI observed that the post combination market share of BAL and RFTL would not raise any competition concerns and that other major producers of ferrochrome and ferro alloys would remain in the market post the combination. Moreover, producers of other ferro alloys can also manufacture ferrochrome as similar type of plants and equipment may produce different types of ferro alloys. Accordingly, CCI approved the proposed transaction, as it was unlikely to cause any AAEC.
For further information, please contact:
Zia Mody, Partner, AZB & Partners
Shuva Mandal, Partner, AZB & Partners