Srikalahasthi Pipes-Electrosteel Castings merger deal gets CCI nod

The Competition Commission of India (CCI) on Friday said it has approved the proposed merger of Srikalahasthi Pipes Ltd and Electrosteel Castings Ltd. The combined entity will be a leading manufacturer of ductile iron pipes with 30 per cent market share, ElectroSteel Castings had said in a regulatory filing in October. Post amalgamation, Electrosteel Castings will be the surviving entity, as per the combination notice filed with the fair trade regulator.

The Competition Commission of India (CCI) on Friday said it has approved the proposed merger of Srikalahasthi Pipes Ltd and Electrosteel Castings Ltd. The combined entity will be a leading manufacturer of ductile iron pipes with 30 per cent market share, ElectroSteel Castings had said in a regulatory filing in October.

Post amalgamation, Electrosteel Castings will be the surviving entity, as per the combination notice filed with the fair trade regulator. In a tweet on Friday, CCI said it has approved the "proposed amalgamation of Srikalahasthi Pipes into Electrosteel Castings".

Deals beyond a certain threshold require clearance from CCI, which keeps a tab on anti-competitive practices in the market place. "The proposed combination will enable the parties to streamline their businesses into one combined entity, which will result in achieving economies of scale and avoidance of duplicative costs and expenditure within effectively the same group," the notice said.