IN RE: JSW STEEL LTD Vs. STATE

JUDGEMENT

(1.) ON 1st November, 2013, the Competition Commission of India (hereinafter referred to as the "Commission") received a notice under sub -section (2) of Section 6 of the Competition Act, 2002 (hereinafter referred to as the "Act") given by JSW Steel Limited ("hereinafter referred to as "JSW Steel/Acquirer").In terms of Regulation 14 of Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011 (hereinafter referred to as "Combination Regulations"), on 8th November, 2013, the Acquirer was required to remove certain defects and provide information/document(s). The reply of the Acquirer was filed on 25th November, 2013. The Acquirer also filed additional information on 26th November, 2013 in continuation of its response dated 25th November, 2013.

(2.) THE notice relates to the proposed acquisition of the cement manufacturing undertaking of Heidelberg Cement India Ltd. (hereinafter referred to as "HCIL") situated at Dolvi, district Raigad (Maharashtra) (hereinafter referred to as the "Raigad Undertaking"), by JSW Steel, on a slump sale basis.

(3.) JSW Steel is a listed company incorporated in India and is stated to be a part of the diversified JSW group, which has its presence in the steel, energy, infrastructure, cement, Aluminium and information technology sectors. As stated in the notice, JSW Steel also owns and operates a cement grinding unit having an installed capacity of 0.3 mtpa, situated at district Bellary (Karnataka). However, as stated in the notice, the entire quantity of cement manufactured at this grinding unit is stated to be captively consumed. JSW Cement Limited ("JSW Cement"), which is also part of the JSW group, is engaged in manufacturing and selling different varieties of cement like portland slag cement ("PSC"), ordinary portland cement ("OPC") and Ground Granulated Blast Furnace Slag ("GGBS") at two of its plants situated at Bellary (Karnataka) ("Vijayanagar plant"), having an installed capacity of 0.7 mtpa and at Kurnool (Andhra Pradesh) ("Nandyal plant") having an installed capacity of 4.5 mtpa. Further, as per the notice, JSW Cement has also recently acquired a grinding unit of the capacity of 0.1 mtpa at Dolvi, Raigad (Maharashtra).