Itc Hotels Limited
Case brief
What is this about?
The Competition Commission of India evaluated a proposed demerger of ITC's hotel business into a new subsidiary, ITC Hotels. The Commission determined the move was an internal restructuring with no change in control and approved the combination under Section 31(1) as unlikely to cause an appreciable adverse effect on competition.
What did the court decide?
The proposed combination was approved under Section 31(1) of the Competition Act, 2002.
What the court decided
COMPETITION COMMISSION OF INDIA Combination Registration No. C-2024/04/1138
28th May 2024
Notice under Section 6(2) of the Competition Act, 2002 given by ITC Hotels Limited
CORAM:
Ms. Ravneet Kaur Chairperson
Mr. Anil Agrawal Member
Ms. Sweta Kakkad Member
Order under Section 31(1) of the Competition Act, 2002
- On 22nd April 2024, the Competition Commission of India (‘ Commission’ ) received a Notice under Section 6(2) of the Competition Act, 2002 (‘ Act’ ) given by ITC Hotels Limited ( ITC Hotels ). The Notice was filed pursuant to the Scheme of Arrangement approved by the respective boards of ITC Limited ( ITC ) and ITC Hotels (collectively, “ Parties ”) on 14th August 2023 ( Scheme ).
- ITC is a professionally managed listed company which does not have any shareholder/shareholder group classified as a promoter/promoter group. ITC, directly or through its affiliates, is engaged in diversified businesses in India spanning fast-moving consumer goods ( viz. , cigarettes & cigars, foods, personal care products, education & stationery products, safety matches, agarbattis & dhoop), hotels, paperboards, paper and packaging, and agri-business.
Issues for consideration
2 issues framed by the court
Whether a proposed demerger of hotel business assets from a parent company by way of internal restructuring constitutes a combination under the Competition Act.
Whether the internal restructuring leads to any appreciable adverse effect on competition in the relevant market.
Parties & counsel
- petitioner
Competition Commission of India
- respondent
ITC Hotels Limited
Coram
Ravneet Kaur
Case details
As recorded by the court registry
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