The Competition Commission of India (CCI) has granted approvals for South Korea-based global steel major POSCO Group’s intra-group restructuring by acquiring the entire shareholding of LX International Corporation in POSCO-India Pune Processing Centre Private Ltd (IPPC), according to a company statement on Wednesday, February 5.
“CCI approves the proposed acquisition of certain shareholding in POSCO - India Pune Processing Centre Private Ltd by POSCO India Processing Centre Private Ltd,” the statement said.
The acquisition will be executed by POSCO-India Processing Centre Private Ltd (PIPC), a subsidiary of POSCO Holdings Inc.
The deal aims to consolidate the group’s control over its steel processing and distribution network in India. Both PIPC and IPPC are involved in processing and distributing value-added steel products, including hot rolled coils, cold rolled coils, galvanised steel, and specialty steel products.
According to the CCI filing, now approved, the transaction represents an intra-group realignment with no anticipated impact on market concentration or competitive dynamics.
While the parties have identified several overlapping markets for steel processing and distribution, the transaction is not expected to result in any appreciable adverse effects on competition. The exiting seller, LX International Corporation, is an unrelated entity, ensuring a clean transfer within the group.
The proposed deal underscores POSCO Group’s commitment to enhancing operational efficiency and market competitiveness in India, a key market for the steel industry. By consolidating its operations, the group aims to solidify its position in the country’s expanding infrastructure and manufacturing sectors, the statement said.