NEW DELHI: Competition regulator CCI has given its go-ahead to the proposed 14 per cent stake sale in french cement majorLafarge' Indian subsidiary to Baring Private Equity Asia, saying the deal will not adversely effect competition in the country.
The proposed deal comprises the subscription of 14.03 percent stake in Lafarge India by Paris Cement Investment Holdings -- a wholly owned subsidiary of Baring.
In its order dated June 26, Competition Commission of India (CCI) said that "the combination is not likely to have appreciable adverse effect on competition in India and therefore, the Commission hereby approves the combination under...the (Competition) Act.
According to the regulator the deal would not cause adverse competition concerns as neither Paris Cement nor Baring or any of its portfolio companies is engaged in the business of manufacturing cement in India.
"Further, the business of PCIHL ( Paris Cement Investment Holdings Ltd) and Baring or any of its portfolio companies is not vertically related to the business of LIPL ( Lafarge India Private Ltd)," CCI noted.
The entities had entered the agreement on May 14, 2013, which stated that certain actions of Lafarge India cannot be taken without the prior written consent of Paris Cement Investment Holdings.
Following the agreement, the entities had approached CCI for its approval on June 12, 2013.