On May 11, 2018, CCI approved the acquisition of 90% of the equity share capital of Electrosteel Steels Limited (‘ESL’) by Vedanta Limited (‘Vedanta’) pursuant to a resolution plan under the Insolvency and Bankruptcy Code 2016 (‘IBC’), dated March 29, 2018 entered into between the parties.Vedanta, a public company incorporated in India, is a subsidiary of Vedanta Resources Plc. which is an entity incorporated in United Kingdom. It is a natural resources company having operations in aluminium, zinc, lead, silver, copper, iron ore and power. ESL, a public company incorporated in India, is a part of Electrosteel Group and is engaged in the business of iron and steel. It manufactures and sells products such as Pig Iron, Billets, TMT Bars and Wire Rods.CCI noted that both parties were involved in the manufacture and sale of pig iron in India. Further, although there was no existing vertical relationship between the parties, a potential for such vertical relationship did exist. However, CCI noted that the combined market share of the parties was insignificant and there were several competitors which imposed competitive restraints upon the parties. Accordingly, CCI concluded that the proposed transaction was unlikely to cause any AAEC in India, and approved the same.

*Combination Registration No. C-2018/04/563.