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CCI begins public scrutiny of Holcim-Lafarge deal

The comments with respect to the Holcim-Lafarge deal need to be submitted to the CCI (Competition Commission of India) within 15 days, along with supporting documents on how the merger can adversely impact the concerned person or entity, the regulator said, adding that it would not consider ‘unsubstantiated objections’ to the deal.

Finding prima facie violation of competition norms in the proposed Holcim-Lafarge merger, fair trade regulator CCI today launched a public scrutiny of the finer details of the deal that would create one of the world’s largest cement makers.

This is the second public scrutiny of a M&A deal by the Competition Commission of India (CCI) after Ranbaxy – Sun Pharma merger.

The comments with respect to the Holcim-Lafarge deal need to be submitted to the CCI (Competition Commission of India) within 15 days, along with supporting documents on how the merger can adversely impact the concerned person or entity, the regulator said, adding that it would not consider ‘unsubstantiated objections’ to the deal.

CCI places a deal for public consultation if it forms “a prima facie opinion that the combination has or is likely to have an appreciable adverse effect on competition” in the relevant market in India.

The deal between Holcim and Lafarge, both of which have good presence in India, was announced in April this year. There have been concerns that the transaction could raise anti-competitive issues in the Indian market.

CCI chairman Ashok Chawla had indicated that the regulator would take more time before deciding on the transaction.

Swiss major Holcim has controlling stakes in India’s two leading cement makers – ACC Ltd and Ambuja Cements. Together, ACC and Ambuja Cements have an annual production capacity of about 46 million tonnes. Meanwhile, French entity Lafarge has an annual capacity of around eight million tonnes.

While announcing the deal in April, it was said that after a strategic optimisation of the portfolio through a pro-active divestment process, in anticipation of regulatory requirements, Lafarge Holcim would occupy complementary positions.

Holcim and Lafarge have submitted to the Commission that the proposed transaction “would not lead to removal of a vigorous and effective competitor” as the most aggressive players in this business segment are localised players.

Ranbaxy Labs stock price

On November 21, 2014, Ranbaxy Laboratories closed at Rs 617.60, down Rs 6.1, or 0.98 percent. The 52-week high of the share was Rs 697.50 and the 52-week low was Rs 306.05.


The company’s trailing 12-month (TTM) EPS was at Rs 20.93 per share as per the quarter ended September 2014. The stock’s price-to-earnings (P/E) ratio was 29.51. The latest book value of the company is Rs 25.84 per share. At current value, the price-to-book value of the company is 23.90.

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