The competition watchdog CCI has approved the proposed merger of Saurashtra Chemicals (SCL) into Nirma Limited (NL).
“...the commission is of the opinion that the proposed combination is not likely to have an appreciable adverse effect on competition in India and, therefore, the commission approves the proposed combination,” the Competition Commission of India (CCI) said in an order.
Four companies — Nirma Chemical Works, Nirma Credit and Capital, Nirma Industries and Nirma Management Services — have about 92% stake in SCL. KK Patel and family hold nearly 99% stake in each of these four companies.
Nirma Ltd, in which KK Patel and family directly or indirectly hold 92% stake, is into the business of manufacturing and marketing of soap and detergents, linear alkyl benzene, soda ash, pharmaceuticals products, salt and caustic soda.
SCL, a sick company, engaged in the business of manufacturing and marketing of soda ash and sodium bicarbonate.
“It is observed that although the parties to the combination are engaged in the business of manufacturing and marketing of soda ash in India, however, SCL is not an independent competitor to NL...,” the order said.