NEW DELHI: Competition watchdog CCI has cleared Japan-based Nippon Steel & Sumitomo Metal Corporation's acquisition of 51 per cent shareholding in Sanyo Steel.
Besides, the regulator has approved transfer of 100 per cent shareholding in Ovako to Sanyo Steel.
According to the CCI, Nippon Steel is based in Tokyo and is engaged in the business of manufacture and sales of tubes and pipes and auto parts in India and its presence in manufacture of these steel products is limited in the country.
In a tweet on Monday, the CCI said it "approves acquisition of 51 per cent shareholding in Sanyo Special Steel by Nippon Steel & Sumitomo Metal; and transfer of 100 per cent shareholding in Ovako AB to Sanyo."
Sanyo manufactures special steel and in India it has presence through its two subsidiaries namely, Sanyo Special Steel India and Mahindra Sanyo Special Steel Pvt Ltd.
Mahindra Sanyo is a joint venture between Sanyo (51 per cent) Mahindra and Mahindra (29 per cent) and Mitsui and Co Ltd (20 Per cent).
In June, Nippon Steel had announced acquisition of Sweden-based steel maker Ovako and made it a wholly-owned subsidiary.
Deals beyond a certain threshold are required to get clearance from the Competition Commission of India (CCI).
SOURCE: Economic Times