On January 30, 2014, CCI approved the proposed acquisition of the gas plant of Essar Steel Limited (‘Essar Steel’) located at Hazira, Gujarat, on a slump sale basis, by Inox Air Products Limited (‘Inox’).

Inox is engaged in the business of manufacturing and supplying industrial gases, including oxygen, nitrogen, helium, argon, acetylene and special gas mixtures across India, while Essar Steel is an integrated steel producer, and has a gas plant, producing oxygen, nitrogen, and argon gases at its Hazira steel plant. The gases produced in the units located at the Hazira plant are primarily used for the purpose of captive consumption in steel manufacturing by Essar Steel.

Parties have submitted that, post combination, a guaranteed quantity of the industrial gases produced at the Hazira plant of Essar Steel, on job work and long-term basis would be provided to Essar Steel by Inox. Accordingly, the proposed acquisition of the gas plant at Hazira will not increase the capacity of Inox for producing and selling industrial gases in India.

In light of the above, CCI was of the view that the proposed combination is unlikely to have an Adverse Effect in India.

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