)
Competition Commission of India (CCI) has invited public comments on the proposed Holcim-Lafarge merger after forming a prima facie opinion that the combination is likely to have an appreciable adverse effect on competition in Indian cement industry.
This is the second case after Sun Pharma-Ranbaxy merger where — order is expected by the end of this month — CCI has decided to ask for public comments.
The comments have to be made within fifteen days to CCI, with supporting documents explaining how the person is adversely affected or is likely to be affected by the combination.
In India, Holcim is active through its two subsidiaries namely ACC and Ambuja Cements, with an annual capacity of 46 million tonnes.
On the other hand, Lafarge is active through its subsidiaries namely Lafarge India and Lafarge Aggregates & Concrete India, with an annual capacity of eight million tonnes.
Holcim and Lafarge, through their respective local operating companies, are active in production and supply of cement, aggregates (including sand and gravel), RMC and other construction related products.
RMC is a ready-to-use concrete product that is made of cement, aggregates, water and admixtures.
Holcim is listed on the SIX (Swiss stock exchange) and Lafarge is listed on Euronext Paris (French Stock Exchange). Each Lafarge shareholder, tendering Lafarge shares to the contemplated exchange offer, would receive an equal number of newly issued ordinary shares of Holcim.
The new entity will be named as “LafargeHolcim” and will be listed on SIX and Euronext. According to both the companies, the Indian cement industry is characterised by a large number of players “who compete vigorously indicating that the markets are highly competitive”.
