Tata Sponge Iron Limited, India
Case brief
What is this about?
The Competition Commission of India assessed a proposed combination where Tata Sponge Iron Limited acquired Usha Martin Limited's steel division. Finding insignificant overlaps and market shares below 20%, the Commission held the acquisition would not cause appreciable adverse effects on competition and approved it under Section 31(1).
What did the court decide?
The proposed combination is approved under Section 31(1) of the Competition Act, 2002, subject to conditions.
What the court decided
A compact analysis
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
COMPETITION COMMISSION OF INDIA (Combination Registration No. C-2018/10/608)
Fair Competition For Greater Good
07.12.2018
Notice u/s 6 (2) of the Competition Act, 2002 given by Tata Sponge Iron Limited
CORAM:
Mr. Ashok Kumar Gupta Chairperson Mr. Augustine Peter Member Mr. U. C. Nahta Member
Legal Representatives of the parties: M/s AZB & Partners
Order under Section 31(1) of the Competition Act, 2002
- On 30.10.2018, the Competition Commission of India (“ Commission ”) received a notice under Section 6(2) of the Competition Act, 2002 (“ Act ”) filed by Tata Sponge Iron Limited (“ TSIL ”/ “ Acquirer ”), pursuant to execution of Business Transfer Agreement dated 22.09.2018 between Tata Steel Limited (“ TSL ”) and Usha Martin Limited (“ UML ”) and the subsequent novation agreement dated 24.10.2018 entered into between TSIL, TSL and UML (hereinafter, TSIL, TSL and UML will be referred to as the “ Parties ”).
Issues for consideration
3 issues framed by the court
Whether the proposed acquisition of the steel division of Usha Martin Limited by Tata Sponge Iron Limited is likely to result in any appreciable adverse effect on competition.
Whether the combined entity will have the ability or incentive to foreclose vertically related markets in the steel sector.
Whether the incremental market shares of the proposed combination in relevant product segments are significant enough to warrant approval under Section 31(1).
Parties & counsel
- applicant
Tata Sponge Iron Limited
- applicant
Tata Steel Limited
- other
Usha Martin Limited
Coram
Case details
As recorded by the court registry
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