On May 14, 2018, Metals and mining giant Vedanta Ltd official said that it has received green signal for from Competition Commission of India to obtain Electrosteel Steels Ltd. This acquisition will allow Vedanta to acquire a 90% stake in the company.
Vedanta Resources said, in the statement, “Vedanta has received the approval from the CCI for the application made by it for the acquisition of Electrosteel Steels.”
Vedanta Resources or VR is a diversified conglomerate with a wide commodity mix covering iron ore, zinc, copper, aluminum. The company ended at Rs282.35 down by Rs4.5 or 1.57% from its previous closing respectively. Vedanta operates power generation assets for both captive consumptions as well as commercial generation.
Competition Commission of India said in the statement, “No Appreciable Adverse Effect on Competition (AAEC) in respect of the proposed acquisition of Electrosteel Steels by Vedanta”.
“The resolution plan of corporate debtor Electrosteel Steels Ltd which is approved by the CoC with a voting share of 100 percent under section 31 (1) of the Insolvency & Bankruptcy Code 2016” has been approved, The National Company Law Tribunal said in the statement.
Metals and mining giant said, “The funds received by Electrosteel as debt and equity will be used to fully settle the debts owed to the existing financial creditors of Electrosteel, by payment of USD 812.6 million”.