IN RE: ALSTOM BHARAT FORGE POWER LTD Vs. STATE

JUDGEMENT

(1.) ON 20th November, 2013, the Competition Commission of India (hereinafter referred to as the "Commission") received a notice, of a proposed combination, under sub -section (2) of Section 6 of the Competition Act, 2002 (hereinafter referred to as the "Act") given jointly by ABFPL and KAPL. The notice has been given pursuant to the approval by the Board of Directors of ABFPL and KAPL of the scheme of amalgamation under the relevant provisions of the Companies Act, 1956 and the Companies Act, 2013 ("Scheme of Amalgamation"), through separate board resolutions, each dated 22nd October, 2013.Under the proposed combination, KAPL will merge into ABFPL pursuant to the Scheme of Amalgamation, as a result of which, KAPL will cease to exist and all the assets and liabilities of KAPL would be transferred to ABFPL. Post combination, ABFPL will be the surviving entity.

(2.) THE proposed combination falls under Section 5(c) of the Act.

(3.) KAPL is also stated to be an unlisted public company incorporated under the provisions of the Companies Act, 1956 and is a joint venture between Bharat Forge Limited, which currently holds 51 per cent of the equity shareholding of KAPL, and Alstom Power Holdings S.A., which holds the remaining 49 per cent of the equity shareholding of KAPL. As stated in the notice, KAPL was set up to manufacture heat exchangers and other auxiliary equipments for steam turbine generator islands in the range of 300 MW to 800 MW for sub -critical and super -critical thermal power applications. Further, as stated in the notice, KAPL commenced construction of its factory; however, the construction has since been stopped.