Notice given by Hyundai Hysco Co. Ltd. and Hyundai Steel Company
Case brief
What is this about?
The Competition Commission of India examined a proposed merger agreement between Hyundai Hysco Co Ltd and Hyundai Steel. Finding no horizontal overlap and insignificant market shares, the Commission concluded the combination would not adversely affect competition and approved it under Section 31(1).
What did the court decide?
Combination of Hyundai Hysco into Hyundai Steel is approved.
What the court decided
COMPETITION COMMISSION OF INDIA
(Combination Registration No. C-2015/05/272)
Fair Competition For Greater Good
05.06.2015
Notice u/s 6 (2) of the Competition Act, 2002 (‘Act’) given by:
- Hyundai Hysco Co. Ltd.
- Hyundai Steel Company
- Order under Section 31(1) of the Competition Act, 2002 (‘Act’)
- On 8th May 2015, the Competition Commission of India ( “Commission” ) received a notice under sub-section (2) of Section 6 of the Act given by Hyundai Hysco Co. Ltd. (“ Hyundai Hysco ”) and Hyundai Steel Company (“ Hyundai Steel ”), pursuant to a merger agreement (‘ Agreement ’) entered into between them on 8th April 2015. Both Hyundai Hysco and Hyundai Steel are together referred to as “Parties”.
- The Proposed combination relates to the merger of Hyundai Hysco into Hyundai Steel as a result of which Hyundai Hysco would cease to exist and Hyundai Steel will be the surviving company. It has been stated by the parties that both Hyundai Hysco and Hyundai Steel belong to the Hyundai Motor Group, South Korea.
Issues for consideration
3 issues framed by the court
Whether the proposed merger of Hyundai Hysco into Hyundai Steel would result in an appreciable adverse effect on competition in India.
Whether the combination involved horizontal overlap or significant vertical foreclosure in the upstream or downstream markets.
Whether the proposed combination could be approved under Section 31(1) of the Competition Act, 2002.
Case details
As recorded by the court registry
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