On July 20, 2021, CCI approved the acquisition of up to 16.57% equity share capital of Mukand Limited (‘ML’) by Bajaj Sevashram Private Limited (‘BSPL’), Bachhraj & Company Private Limited (‘BCOPL’), Bachhraj Factories Private Limited (‘BFPL’), and Sanraj Nayan Investments Private Limited (‘SNIPL’) (collectively, ‘Acquirers’).^[1]

All Acquirers are part of the Bajaj group of companies with BSPL as the ultimate controlling entity. The Acquirers are primarily investment and lending companies, and are not engaged in the manufacturing or trading of any goods. BSPL, BFPL and SNIPL are all unregistered core investment companies holding shares in various Bajaj group companies. BCOPL is registered as a non-deposit taking non-banking finance company.

The transaction involved a change from existing joint control of Bajaj group and Shah group over ML to sole control of Bajaj group over ML. CCI observed that the Bajaj group does not have any other business similar (horizontal or vertical) to that carried out by the ML (and its subsidiary Mukand Sumi Metal Processing Limited (‘MSMPL’)) except for the business of Mukand Sumi Special Steel Limited (‘MSSSL’), an indirect subsidiary of BSPL.

Considering the operations of ML, MSMPL and MSSSL, CCI found that the transaction involves horizontal overlaps in the broader segment for long steel products which include, (i) bars and rods; and (ii) billets and blooms. Further, CCI noted that the billets and blooms manufactured by ML are supplied to MSSSL, and a portion of the bars and wire rods produced by MSSSL are supplied to MSMPL.

Based on Bajaj group’s presence in the overlapping segments and the nature of change in control from the present transaction, CCI observed that it is unlikely to result in any significant changes in competition dynamics in any plausible relevant market. Accordingly, CCI approved this transaction.

[1] Combination Registration No. C-2021/06/845.