Shree Uttam Steel merger with Uttam Galva gets fair trade regulator nod

Fair trade regulator CCI has cleared Shree Uttam Steel and Power's proposed merger with Uttam Galva Steels, co-promoted by Miglani family and ArcelorMittal. Miglani family along with two other associate companies of Uttam Galva holds nearly 97 per cent stake in Shree Uttam Steel and Power. The "proposed combination is not likely to have an appreciable adverse effect on competition in India", CCI said in its order made public today. Competition Commission of India (CCI) keeps a tab on unfair trade practices. The board of Uttam Galva Steels, leading manufacturer of galvanised steel, had approved the proposed scheme of amalgamation on October 21, 2013. Uttam Galva Steels is promoted by the Miglani family and world's largest steel maker ArcelorMittal. CCI noted that there were various integrated steel companies as well as intermediate steel producers who are engaged in the business of products which are similar to those being produced by Uttam Galva Steels. "... as per the information provided in the notice and publicly available documents, the market share of UGSL (Uttam Galva Steels Ltd), in the cold rolled steel and galvanized steel products is insignificant to raise any competition concern," it added. According to the order, Shree Uttam Steel and Power had not started manufacturing or undertaken any trading activities in the year 2012-13, and "once the manufacturing facilities of SUSPL (Shree Uttam Steel and Power Ltd) are established, it would become a backward integration for UGSL". This again is not likely to result in any adverse effect on the competition, the watchdog said. Besides, Miglani family along with two other associate companies of Uttam Galva holds 96.98 per cent stake in Shree Uttam Steel and Power which is engaged in the trading of steel. Meanwhile, in a separate order CCI has ruled that no penalty is required to be imposed on Uttam Galva Steel for alleged delay in filing the notice seeking approval of the regulator by the company. "It is observed that the delay in giving the notice... was for a period of less than a week and inadvertent," CCI said. "It has been submitted that the parties were in discussion with the officials of the Commission since November 14, 2013 for seeking clarification on the procedural requirements for giving the notice regarding the proposed amalgamation," it added.

Shree Uttam Steel merger with Uttam Galva gets fair trade regulator nod

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