The Competition Commission of India (CCI) has approved Sterlite Technologies' proposed deal, related to its manufacturing facility at Haridwar, with Japanese company VISCAS Corporation.
According to the fair trade regulator, the proposed deal which involves series of interconnected steps does not raise anti-competition concerns in the country.
Under the deal, Vedanta Group firm Sterlite Technologies, a provider of transmission solutions for the telecom and power industries, will incorporate a company as its wholly-owned subsidiary and would transfer its power cable manufacturing facility at Haridwar to the newly formed firm.
Following this, VISCAS would subscribe to 51 per cent stake in the new company.
VISCAS is a joint venture company of Furukawa Electric and Fujikura and is into the business of manufacture and sale of High Voltage and Extra High Voltage power cables. In India, VISCAS is present through its indirect subsidiary namely, Viscas Engineering India Private Ltd.
In a recently released order, the Competition Commission of India (CCI) that "the proposed combination is not likely to have an appreciable adverse effect on competition in India".
The fair trade regulator observed that during the past five years, the VISCAS had limited participation in the tenders for power cables floated by the customers of power cables, in India.
"In view of the insignificant presence of the acquirer (VISCAS) in any segment of power cables market in India, the exact definition of the relevant market is left open," CCI said.
"Further, it is also observed that there are a large number of power cables manufacturers of various capacity ranges, in India," the regulator added.
The deal was entered between the companies on September 29, 2014.
