Swiss multinational cement giant LafargeHolcim has got fair trade regulator CCI’s approval for the divestment of its interest in Lafarge India. Sources indicate that the sale of Lafarge India could fetch more than $1 billion.
In March last year, the Commission had granted conditional approval to the $44 billion Holcim – Lafarge merger, a merger that would create the world’s largest cement player, LafargeHolcim.
The CCI order of March 2015 proposed certain modifications to the deal, including the sale of some assets in eastern India to eliminate anti-competition concerns. The CCI had observed that,
“It would be appropriate to propose divestiture as a remedy to eliminate the competition concerns emanating from both sources of harm”.
However, given the uncertainty regarding transfer of mining leases on account of amendment in the Mines and Minerals (Development and Regulation) Act, 1957, the CCI had sought clarifications on the transfer of mining leases and an alternative proposal.
On February 2, 2016 the CCI passed a supplementary order approving the proposal of full share sale of Lafarge India to one or more investors, subject to such buyers meeting the requirements specified in March last year.
This order provides for the sale of Lafarge India to a third party buyer; however, the transaction must be approved by the CCI.
Cyril Amarchand Mangaldas acted as sole legal counsel to LafargeHolcim and Lafarge India. The CAM team was led by Mumbai Competition Partner Nisha Kaur Uberoi and Mumbai Partner Ashwath Rau advised on the corporate law aspects.
The post Cyril Amarchand gets CCI approval for Lafarge India sale
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