Fair trade regulator CCI has approved the proposed merger of Hyundai Hysco with Hyundai Steel, saying the deal would not have any anti-competitive impact in the Indian market.
Both companies are part of South Korea's Hyundai Motor Group.
Hyundai Hysco is into the manufacture and sale of flat steel products, steel pipes, lightweight automotive parts and fuel cell systems.
It has two subsidiaries in India - Hysco Steel India Pvt Ltd (HSIPL) and Automotive Steel Pipe India Pvt Ltd (ASPI).
HSIPL supplies majority of its production in respect of processed steel sheets to Hyundai Motor India Ltd. Hyundai Steel's presence in India is largely limited to the supply of certain raw materials to HSIPL.
Clearing the deal, Competition Commission of India (CCI) said there is no horizontal overlap between the activities of Hyundai Steel and Hyundai Hysco in India.
"Given the insignificant market shares of the parties in India, the fact that Hyundai Steel only supplies to HSIPL and the presence of other major suppliers, it is observed that vertical relationship between the parties would not result in foreclosure in the upstream or downstream market(s) in which the parties are present in India," CCI said in an order.
The order dated June 5 was made public today.