The Competition Commission of India (CCI) has given UltraTech Cement the green light to purchase Jaypee's cement facilities in Gujarat.
The CCI order, released on Monday, said that the “proposed combination is not likely to have an appreciable adverse effect on competition in India".
The deal, which was announced in September this year, will strengthen UltraTech's leading position in the Indian market and give it a foothold in the state of Gujarat. The acquisition comprises an integrated cement plant at Sewagram, limestone reserves, captive power plant and mining leases, among others.
The watchdog also noted that with other major manufacturers including ABG Cement and Lafarge India planning to set up plants in Gujarat and neighbouring Rajasthan, respectively,: "the entry of new firms is generally considered to counterbalance any attempt by the merging parties or their competitors to profit from the potential reduction in competition brought about by the merger.”