CCI Approves Acquisition of 20.51% Equity Shares of Indo Rama Synthetics (India) Limited by Mr. Aloke Lohia and Ms. Urmila Lohia from Brookgrange Investment Limited.

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Feb 12, 2024

CCI Approves Acquisition of 20.51% Equity Shares of Indo Rama Synthetics (India) Limited by Mr. Aloke Lohia and Ms. Urmila Lohia from Brookgrange Investment Limited.

Background

On November 6, 2023, CCI approved the acquisition of 20.51% equity shares of Indo Rama Synthetics (India) Limited (‘IRSL/ Target’) by Mr. Aloke Lohia and Ms. Urmila Lohia (‘Acquirers‘) from Brookgrange Investment Limited (‘Brookgrange’) (‘Proposed Combination’).^[1]

Parties to Combination

IRSL is a public listed company with two main promoter groups: (i) O.P. Lohia Group holding around 15.51% of shares; and (ii) Aloke Lohia Group holding around 59.33% of shares (including Brookgrange). The remaining shares are held by the public. Both groups jointly control the management and affairs of IRSL. IRSL is involved in the production and trading of a diverse range of polyester fibers and filaments used in various applications.

Competitive Assessment

The CCI approved the Proposed Transaction concluding that it was not likely to have an appreciable adverse effect on competition in India for the following reasons: (i) there are no significant overlaps between IRSL and these other entities, except for GVPL, which had limited involvement in trading polyester staple fiber supplied by IRSL; and (ii) the connections between GVPL and IRSL are insignificant and do not impact competition dynamics in any plausible relevant markets that could have been assessed in the context of the Proposed Transaction.

[1] IRSL / Mr. Aloke Lohia and Ms. Urmila Lohia (Combination Registration No. C-2023/09/1055).

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