CCI approves merger of Nippon Steel, Sumitomo Metal Industries

NEW DELHI: Competition watchdog CCI has approved the proposed merger of Japan-based steel giants Nippon Steel Corporation and Sumitomo Metal Industries.

"The Commission is of the opinion that the proposed combination is not likely to have an appreciable adverse effect on competition in India and therefore, the Commission hereby approves the proposed combination," Competition Commission of India (CCI) said in an order yesterday.

Earlier this month, the two companies received a nod for their business integration by the Japan Fair Trade Commission (JFTC).

A merger agreement will be executed in April next year, after which it will be sent for approval by the Companies' shareholders in June 2012. The business integration is scheduled to be complete on October 1, 2012.

In India, the operations of the two companies are mainly related to the sale of various types of steel products.

Steel producers in the country may be categorised as integrated steel producers and other producers (non- integrated) based on the level of integration ranging from availability of raw material to production of range of finished steel products.