CCI okays Nippon Steel's proposal to acquire 53.4% stake in Krosaki Harima Corp

Core Viewpoint - Nippon Steel Corporation has received approval from the Competition Commission of India to acquire the remaining 53.4% stake in Krosaki Harima Corporation, aiming to make Krosaki a wholly-owned subsidiary [1][6]. Group 1: Transaction Details - Nippon Steel currently holds a 46.6% stake in Krosaki, and upon completion of the transaction, its holding will increase to 100% [1][6]. - The acquisition will be executed through a tender offer and may include a potential squeeze-out if applicable [1][6]. - The total value of the acquisition is estimated at 75.7 billion yen [5]. Group 2: Business Operations - In India, Nippon Steel is involved in manufacturing tubes and pipes, processing automotive cold rolled steel sheets, crankshafts, and auto parts, as well as importing and selling various products [2][6]. - Krosaki is a publicly listed company in Japan, and in India, it operates through affiliate entities that manufacture and sell refractory products, servicing industries such as iron & steel making, lime, steel, aluminum, power, cement, and copper [2][6]. Group 3: Strategic Intent - The acquisition is part of Nippon Steel's strategy to consolidate its control over Krosaki, where it already has a significant stake [6]. - Regulatory approval is required for deals beyond a certain threshold to ensure fair competition and prevent unfair business practices [6].