Jurisdiction - India
India – CCI Approves JSW Steel Limited’s Acquisition Of Welspun Maxsteel Limited.

28 December, 2014



On September 23, 2014, CCI approved the acquisition of Welspun Maxsteel Limited (‘Welspun
Max’) by JSW Steel Limited (‘JSW Steel’). JSW Steel sought to acquire the entire shareholding of
Welspun Max from Welspun Enterprises Limited (‘Welspun Enterprises’), including the equity
shares held through its affiliates.


CCI observed that JSW Steel is involved in the manufacturing of steel products in India and
Welspun Max is involved in the manufacture of sponge iron in India. CCI further noted that JSW
Steel also produces sponge iron mainly used for captive consumption in its facility at Dolvi in
Raigad district of Maharashtra, which is where Amba River Coke Limited (‘Amba River’), a subsidiary of JSW Steel, has a coke oven and pellet facility.


CCI observed that the proposed acquisition will lead to the proposed expansion of JSW Steel
in Dolvi, and help reduce costs of raw material for Welspun Max. It was further observed that
while there exists a horizontal overlap between JSW Steel and Welspun Max in the production
of sponge iron, JSW Steel produces sponge iron mostly for captive consumption. Further, the
sponge iron industry in India is characterized by the presence of large number of players and
the market share of Welspun Max in production of sponge iron is insignificant. Moreover, while
JSW Steel has purchased a limited quantity of sponge iron from Welspun Max (mostly for captive
consumption), this purchase constituted an insignificant proportion of the overall purchase of
sponge iron by JSW Steel in India.


Accordingly, CCI concluded that the proposed transaction was unlikely to cause any AAEC in
India and approved the transaction.




For further information, please contact:


Zia Mody, AZB & Partners
[email protected]


Abhijit Joshi, AZB & Partners 
[email protected]

Shuva Mandal, AZB & Partners 
[email protected]


Samir Gandhi, AZB & Partners
[email protected]

Percy Billimoria, AZB & Partners 
[email protected]


Aditya Bhat, AZB & Partners 
[email protected]

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