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India – CCI Approves Bradken’s Acquisition Of L&T’s Iron Manufacturing Unit.

18  March, 2015

 


On January 20, 2015, CCI cleared the proposed acquisition by Bradken Operations Pty. Limited of Larsen & Turbo Limited’s (‘L&T’) undertaking in Coimbatore engaged in manufacture and sale of grey iron and/or spheroidal graphite iron castings in India (‘Target Undertaking’).

Bradken Operations Pty. Limited, a company incorporated in Australia, is engaged in the manufacture and supply of differentiated capital and consumable products to the mining, transport, general industrial and contract manufacturing markets globally. It is subsidiary of Bradken Limited (“Bradken”), Australia’s leading combined foundry and heavy engineering and ferrous casting company. L&T is a company engaged in the business of technology, engineering, construction, manufacturing goods and financial services and has operation in over 50 countries.

In the course of its review, CCI observed that Bradken had no presence in India. It did not hold any assets in India nor did it derive any turnover from India. Therefore, no horizontal or vertical overlaps were identified by CCI between the business activities of Bradken and Target Undertaking in the foundries market or in any other market in India. CCI also noted that the market share of the Target Undertaking in the foundry business in India was negligible. Moreover, there were a number of entities engaged in manufacturing products similar to those of the Target Undertaking.

In light of the above, CCI concluded that the proposed transaction was unlikely to cause any AAEC and hence approved the transaction.

AZB     

 

For further information, please contact:

 

Zia Mody, AZB & Partners
zia.mody@azbpartners.com

 

Abhijit Joshi, AZB & Partners 
abhijit.joshi@azbpartners.com

Shuva Mandal, AZB & Partners 
shuva.mandal@azbpartners.com

 

Samir Gandhi, AZB & Partners
samir.gandhi@azbpartners.com

Percy Billimoria, AZB & Partners 
percy.billimoria@azbpartners.com

 

Aditya Bhat, AZB & Partners 
aditya.bhat@azbpartners.com

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