CCI okays Nippon Steel's proposal to acquire 53.4 pc stake in Krosaki Harima Corp

New Delhi, Jan 6 (PTI) The Competition Commission of India (CCI) on Tuesday approved Japanese steelmaker Nippon Steel Corporation's proposal to acquire the remaining 53.4 per cent stake in Krosaki Harima Corporation.

Nippon Steel holds a 46.6 per cent stake in Krosaki. After the completion of the transaction, Nippon Steel's holding in Krosaki would be 100 per cent.

"The proposed combination involves acquisition by Nippon Steel Corporation (Nippon Steel) of 53.4 per cent shareholding of Krosaki Harima Corporation (Krosaki) by way of a tender offer and potential squeeze out (if applicable)," the regulator said in a release.

In India, Nippon Steel is engaged in the business of manufacturing tubes and pipes, and processing automotive cold rolled steel sheets, crankshafts, and auto-parts and also imports and sells various products.

Krosaki is a listed company in Japan. In India, Krosaki, through its affiliate entities, is engaged in the manufacturing and sale of refractory products, and services the iron & steel making, lime, steel, aluminium, power, cement, copper, etc. industries.

In August last year, Nippon Steel Corporation announced its intention to acquire all shares of Krosaki Harima Corporation through a tender offer, aiming to make Krosaki a wholly-owned subsidiary for 75.7 billion yen.

The move was part of Nippon Steel's strategy to consolidate its control over Krosaki, in which it already holds a significant stake.

The deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace. PTI HG HVA HVA