In March last year, the Commission had granted conditional approval to the $44 billion Holcim-Lafarge merger, proposing certain modifications to the deal. The CCI directed the parties to divest 2 plants owned by Lafarge in the Eastern region, as the merger was perceived to have an appreciable adverse impact on the grey cement market in the Eastern region.
Unable to divest the 2 plants, Lafarge-Holcim through Cyril Amarchand Mangaldas proposed an alternative i.e. to sell the entire of Lafarge’s India Business instead. On February 2, 2016 the CCI passed a supplementary order approving the proposal.
Opposing the order passed by the Commission in February 2016, Dalmia Cement (Bharat) Limited, filed an appeal with the COMPAT on April 5 2016, challenging the validity of the order passed in February 2016 on the ground that CCI has no jurisdiction to approve a new approval after having passed an order under Section 31 of the Competition Act, 2002.
Appearing on behalf of Dalmia, Ramji Srinivasan contended that “there is no provision in Competition Act, 2002 for acceptance of the alternative proposal in a combination case, once the terms of combination have been finalised by the Commission and on this ground alone the impugned order is liable to be set aside.”
The COMPAT, in agreement with Ramji Srinivasan’s contention, has granted interim relief staying the operation of the order passed in February, thereby staying the sale of the shareholding of Lafarge India Pvt. Ltd.
Luthra & Luthra Law Offices has acted on behalf of Dalmia on the matter. The team was led by Partners G.R. Bhatia and Abdullah Hussain with assistance from Kanika Chaudhary Nayar (Managing Associate), Deeksha Manchanda (Senior Associate) and Tripti Malhotra.
Read the Order (Pages 3&4) passed by the Commission on April 13, 2016 below: