The Competition Commission of India (CCI) will decide on the proposed merger of Lafarge and Holcim within a month, according to CCI Chairman Ashok Chawla.
Lafarge and Holcim issued a joint filing to the CCI stating that the company would continue to face strong competition from Indian cement manufacturers such as UltraTech, Shree Cement and Jaypee Group at a pan-India level. However, the CCI, which invited public comments on the issue in November 2014, is still examining the merger as it raises competition concerns.
According to local reports, company officials said the CCI is expected to advise a structural remedy to approve the merger. This usually involves asking the companies to divest certain assets to reduce the impact of the merger on the market.
Brazil’s competition authority has approved the LafargeHolcim merger proposal on the condition of a number of asset disposals; Colombia’s Cementos Argos has announced that it will no longer participate in the bidding process for divested Lafarge and Holcim operations in Brazil.
The Competition Commission of India has ‘formed a prima facie opinion that the combination is likely to have an appreciable adverse effect on competition’ and announced that it will be inviting public comments on the planned LafargeHolcim merger.