The Competition Commission of India (CCI) Tuesday approved the proposed sale of Larsen and Toubro's (L&T) iron manufacturing unit in Coimbatore to Australia-based Bradken Operations.
"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," the CCI said in an order issued Tuesday.
The proposed deal will lead to Bradken acquiring the L&T's iron manufacturing unit located in Coimbatore.
The undertaking is engaged in the manufacture and sale of grey iron or spheroidal graphite iron castings in India. It primarily caters to the requirements of entities engaged in wind energy industry.
The commission observed that Bradken has no presence in India and at present does not hold any assets in the country.
"It is noted that there is no horizontal or vertical overlap between the business activities of Bradken and target undertaking in the foundries market or in any other market in India," the order said.
Bradken is engaged in the manufacture and supply of differentiated capital and consumable products to the mining, transport, general industrial and contract manufacturing markets globally.
In November, both the firms agreed on the deal and sought the CCI's approval for it.
