On April 9, 2019, CCI approved the acquisition of entire business operations of Asian Colour Coated Ispat Limited by JSW Steel Coated Products Limited (‘JSWSCL’). The notice was filed pursuant to a resolution plan submitted by JSWSCL to the resolution professional as per the provisions of the Insolvency and Bankruptcy Code, 2016.
In its assessment, CCI observed that the activities of the parties competed in certain steel products in India i.e., (i) hot rolled coiled sheets and plates; (ii) cold rolled coils and sheets; (iii) galvanised products; and (iv) colour coated products (‘CCPs’). CCI assessed the combined market shares of the parties on the basis of installed capacity and domestic sales, and concluded that the combined market shares of the parties did not exceed 30% and 20% respectively, except in the case of CCPs. Further, the incremental market shares were estimated to be around 0-5% on the basis of both installed capacity as well as domestic sales. For CCPs, the increment was within the range of 5-10%. Finally, CCI approved the transaction after considering the presence of significant competitors such as Tata Steel Limited, Essar Steel Limited and SAIL in each product segment.