Larsen & Toubro's proposed sale of its iron manufacturing unit in Coimbatore to Australian firm Bradken has got the approval from Competition Commission of India (CCI).
According to the fair trade watchdog, the proposed deal is "is not likely to have an appreciable adverse effect on competition in India".
Under the deal, Bradken Operations -- part of Bradken Ltd -- will acquire an undertaking of Larsen & Toubro (L&T) in Coimbatore.
The undertaking is engaged in the manufacture and sale of grey iron and/or spheroidal graphite iron castings in India, and primarily caters to the requirements of entities engaged in wind energy industry.
"It is observed from the information given in the notice that Bradken Ltd has no presence in India, either directly or indirectly, through subsidiaries, joint ventures and associate companies or in any other manner," CCI said in an order released today.
"Further, at present, it does not hold any assets in India or derive any turnover from India," the regulator added.
Accordingly, CCI noted that there "is no horizontal or vertical overlap between the business activities of Bradken Ltd and target undertaking in the foundries market or in any other market in India".
L&T is into the business of technology, engineering, construction, manufacturing goods and financial services. It has operations in over 50 countries including India, the Gulf, South-East Asia, Australia and the United Kingdom.
On the other hand, Bradken Operations engaged in the manufacture or supply of differentiated capital and consumable products to the mining, transport, general industrial and contract manufacturing markets globally.
L&T and Bradken had entered into the deal on November 11, 2014 following which they had approached CCI for its approval on December 10.
