Dismissed

Notice for proposed amalgamation given by Champalal Motilal Steel Company Private Limited, Pheonix Impex Private Limited, Poscho Steels Private Limited and Akshata Mercantile Private Limited.

CCI9 Apr 2013C-2013/03/111

Case brief

AI extract

What is this about?

The Competition Commission of India examined a notice for the amalgamation of three companies into a fourth. After reviewing financial details, the Commission held that the transaction did not meet the asset or turnover thresholds prescribed under Section 5, meaning it was not a 'combination.' Consequently, the filed notice required no Commission order.

What did the court decide?

The notice filed by the parties under Section 6(2) was declared not required and no order under Section 31 was deemed necessary.

Notice for proposed amalgamation given by Champalal Motilal… — Company and Corporate | CCI (2013)

¶1

COMPETITION COMMISSION OF INDIA

¶2

9^th April, 2013

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Combination Registration No. C-2013/03/111

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On 4^th March, 2013, the Competition Commission of India (hereinafter referred to as the “ Commission ”) received a notice jointly filed by Champalal Motilal Steel Company Private Limited (hereinafter referred to as “ CMSL ”), Pheonix Impex Private Limited (hereinafter referred to as “ PIPL ”), Poscho Steels Private Limited (hereinafter referred to as “ PSPL ”) and Akshata Mercantile Private Limited (hereinafter referred to as “ AMPL ”) {hereinafter collectively referred to as “ parties ”}, under sub-section (2) of Section 6 of the Competition Act, 2002 (hereinafter referred to as the “ Act ”), relating to the proposed amalgamation of CMSL, PIPL and PSPL into AMPL, pursuant to a Scheme of Amalgamation under Sections 391 to 394 and other relevant provisions of the Companies Act, 1956, which was approved by the Board of Directors of the parties on 22^nd February, 2013.

¶5

In terms of Regulation 14 of The Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011 (hereinafter referred to as “ Combination Regulations ”), on 6^th March, 2013, the parties were required to remove certain defect(s) in the notice and furnish the required information latest by 13^th March, 2013, which was finally furnished by the parties on 2^nd April, 2013. The parties, in the said letter, were also required to clarify as to how the proposed amalgamation, for which the notice was filed by them under sub-section (2) of Section 6 of the Act, met the assets or the turnover thresholds as prescribed under Section 5(c) of the Act.

¶6

On going through the details provided in the notice and the subsequent submissions made by the parties, it was observed that the value of the assets or the value of the turnover of the parties to the proposed amalgamation did not exceed the value of assets or the value of the turnover as prescribed under Section 5 of the Act.

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C-2013/03/111 Page 1 of 2

¶8

Considering the facts on record and the details provided in the notice, it is noted that the proposed amalgamation of CMSL, PIPL and PSPL into AMPL, pursuant to the said Scheme of Amalgamation, for which the parties filed the notice under subsection (2) of Section 6 of the Act, is not a ‘combination’ in terms of Section 5 of the Act. Therefore, in terms of sub-regulation (1) of Regulation 14 of the Combination Regulations, read with clause (b) of sub-regulation (1) of Regulation (2) of the Combination Regulations, the notice filed by the parties under the provisions of subsection (2) of Section 6 of the Act on 4^th March, 2013, was not required to be filed, and does not require the Commission’s Order under Section 31 of the Act.

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This decision of the Commission shall stand revoked if, at any time, the information provided by the parties is found to be incorrect.

¶10

The Secretary is directed to communicate the decision of the Commission to the parties accordingly.

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C-2013/03/111 Page 1 of 2

Notice for proposed amalgamation given by Champalal Motilal Steel Company Private Limited, Pheonix Impex Private Limited, Poscho Steels Private Limited and Akshata Mercantile Private Limited.

Case brief

What is this about?

What did the court decide?

Notice for proposed amalgamation given by Champalal Motilal Steel Company Private Limited, Pheonix Impex Private Limited, Poscho Steels Private Limited and Akshata Mercantile Private Limited.

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