The Competition Commission of India (CCI) on Tuesday approved Japanese steelmaker Nippon Steel Corporation's proposal to acquire the remaining 53.4% stake in Krosaki Harima Corporation.
Nippon Steel holds a 46.6% stake in Krosaki. After the completion of the transaction, Nippon Steel's holding in Krosaki would be 100%.
'The proposed combination involves acquisition by Nippon Steel Corporation (Nippon Steel) of 53.4% shareholding of Krosaki Harima Corporation (Krosaki) by way of a tender offer and potential squeeze out (if applicable),' the regulator said in a release.
In India, Nippon Steel is engaged in the business of manufacturing tubes and pipes, and processing automotive cold rolled steel sheets, crankshafts, and auto-parts and also imports and sells various products.
Krosaki is a listed company in Japan. In India, Krosaki, through its affiliate entities, is engaged in the manufacturing and sale of refractory products, and services the iron & steel making, lime, steel, aluminium, power, cement, copper, etc. industries.
In August last year, Nippon Steel Corporation announced its intention to acquire all shares of Krosaki Harima Corporation through a tender offer, aiming to make Krosaki a wholly-owned subsidiary for 75.7 billion yen.
The move was part of Nippon Steel's strategy to consolidate its control over Krosaki, in which it already holds a significant stake.
The deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace.
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