 "CCI seeks public comments on proposed Schneider Electric-L&T deal")
Fair trade regulator CCI has sought public views on Schneider Electric's proposed acquisition of certain businesses of Larsen & Toubro after prima-facie finding that the deal could adversely impact competition.
In a public notice Tuesday, the Competition Commission of India (CCI) said stakeholders have to submit their comments within 15 working days along with supporting documents on how the merger can adversely impact any person or entity.
Under the Competition Act, the watchdog can seek public comments on mergers and acquisitions wherein it has a prima-facie opinion that such a deal could adversely impact competition in the relevant market.
Unsubstantiated objections are not likely to be considered, the notice said.
In May this year, Larsen & Toubro had inked a definitive pact with Schneider Electric to sell its electrical and automation business for an all-cash consideration of Rs 140 bn, as part of its long-term strategy to exit non-core activities.
The CCI has sought "comments/ objections/ suggestions in writing from any person(s) adversely affected or likely to be affected by the combination...," the notice said.
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This is to determine whether the combination has or is likely to have an appreciable adverse effect on competition in the relevant market in India, the regulator said.
The proposed transaction contemplates the acquisition of the electrical and automation (E&A) business of L&T (excluding the marine business unit and Servowatch Ltd, which are currently part of the E&A business of L&T) by Schneider Electric India Private Limited (SEIPL) as a going concern on a slump sale basis; and the acquisition of 35 per cent of the share holding in SEIPL by MacRitchie (together the proposed combination).