CCI clears stake buy of Uttam Galva by UD Industrial

Fair trade regulator CCI has approved the proposed additional stake buy in Uttam Galva Metallics Ltd by Singapore-based investment firm UD Industrial Holding, saying the deal will not raise any anti-competition concerns in India.
As per the proposed deal, UD Industrial Holding which currently holds 19.10 per cent stake in UGML, would purchase shares of the firm from 3 entities -- Liberty Steel Holdings, Liberty Fe Trade DMCC and Liberty Commodities.
The acquisition would hike the holding of UD Industrial Holding in UGML to 44.35 per cent.
In an order dated June 25, the Competition Commission of India (CCI) said that "the proposed combination is not likely to have an appreciable adverse effect on competition in India and therefore, the Commission hereby approves the same under ...The (Competition) Act".

UGML is a part of the Uttam group of companies promoted by Miglani family and is into manufacturing pig iron and other products at its facility located at Wardha in Maharashtra.
According to the fair trade watchdog, UGML and UD Industrial group have "insignificant" market share in business related to pig iron.

Among other points, CCI noted that UD Industrial Holding held 9.62 per cent in Uttam Value Steel Ltd (UVSL), "another company of Miglani family which is engaged in the business of steel manufacturing. However, the vertical relationship between the UGML and UVSL has been of a very insignificant nature".

Liberty Steel, Liberty Fe Trade and Liberty Commodities presently hold 11.02 per cent, 12.10 per cent and 2.67 per cent shareholding in Uttam Galva Metallics.
A share purchase agreement was entered into between the parties concerned on April 11 following which CCI was approached for its approval in May.