CCI approve JSW Steel acquisition of Welspun Maxsteel.

PTI reported that steel major JSW Steel's proposed over INR. 1,000 crore deal to acquire sponge iron maker Welspun Maxsteel has got the approval from the Competition Commission. According to the fair trade regulator the proposed deal is "not likely to have an appreciable adverse effect on competition in India." On August 18th 2014, JSW Steel had entered into a 'Share Purchase Agreement' with Welspun Enterprises to acquire entire shareholding of Welspun Maxsteel. Welspun Maxsteel is promoted by Welspun Enterprises. The deal involves acquisition of entire stake of Welspun Maxsteel from Welspun Enterprises, including the equity shares held through its affiliates. In a recently released order, the Competition Commission of India (CCI) observed, among others, that sponge iron industry in India had the presence of large number of players and the market share of Welspun Maxsteel in production of sponge iron is "insignificant". It said that "JSW Steel has purchased a limited quantity of sponge iron from Welspun Maxsteel mostly for captive consumption." The fair trade regulator said that "However, the same constitutes an insignificant proportion of the overall purchase of sponge iron by JSW Steel in India."