CCI clears LH merger on condition

CCI clears LH merger on condition
23 February 2015

The Competition Commission of India has reportedly given the green light to the Lafarge and Holcim merger on condition it divests divests some of its units, including limestone reserves, to prevent a monopoly in eastern India, top sources said.

After prima facie investigations by CCI revealed the combination will likely have an appreciable adverse effect on competition, especially in eastern India, the CCI launched ‘phase II investigations’.

It put the merger proposal in public scrutiny under Section 29(3) of the Competition Act, 2002 and invited comments from stakeholders including competitors.

The Financial Express (India) reported today that following the phase-II investigation, the competition watchdog has now cleared the merger but stated that certain assets including limestone reserves need to be divested, in eastern India.

“The assets may be sold to a company which is not a competitor,” said the source, adding that the combine has 30 days to respond to the CCI’s suggestions. Information provided by the two companies to CCI shows that the combine will have a market share of 29 per cent in eastern India, taken with Madhya Pradesh and eastern Uttar Pradesh.

Published under Cement News