Fair trade regulator Competition Commission of India has approved the proposed acquisition of over 27 per cent stake in Llyods Steel Industries by two companies, which are promoted by Miglani family.
Ultimate Logisitics Solutions Pvt Ltd and Metallurgical Engineering and Equipment Ltd are promoted by Miglani family, who along with ArcelorMittal co-promote Uttam Galva Steel.
Citing facts on record and assessment of the deal, the Commission said it is of the opinion that the "proposed combination is not likely to have an appreciable adverse effect on competition in India".
Hence, the same is approved, according to an order dated October 4.
Ultimate Logisitics Solutions along with Metallurgical Engineering and Equipment have proposed the purchase nearly 27.46 per cent stake through preferential allotment.
Later, the two entities would make an open offer for additional shares of Lloyds Steel.
The two companies already hold about 24.53 per cent stake in Llyods Steel. This stake was acquired through preferential allotment in March this year.
Lloyds Steel is in the business of producing steel and capital equipment such as hot rolled plates and coils.
Ultimate Logisitics Solutions recently entered into logistics and transportation business while Engineering and Equipment is into trading of all kinds of machinery such as vessel and tank.
It is primarily through Uttam Galva Steels and Uttam Galva Metallics that Miglani family is into the business of manufacture and production of steel products -- a business in which Lloyds Steel is also engaged.
As per the notice given by the companies to the Commission, the proposed combination would create synergies between the existing business of Lloyds Steel and Miglani family group companies.
