Law: Competition Act, 2010

Section: 11

(a) Competition Act (XIX of 2010)---S. 11---Merger, approval of---Scope---Applicants jointly submitted an application concerning their intention of creating a joint venture company---Partner 1 was a glass manufacturer, which distributed and exported float glass, tableware, container ware and opal glass---Partner 2 was involved in the business of polyester staple fiber, soda ash, chemicals, pharmaceuticals, nutraceuticals, animal health products and agri-science---Partner 1 was a dominant player in the relevant market i.e. float glass---Partner 2 was a dominant player in the upstream soda ash (an essential ingredient for production of float glass) market---Commission observed that certain issues might arise concerning the subject transaction, such as; subject transaction might put partner 2 in a position in which it could set preferential prices/terms of its business dealings with partner 1; partner 2 might also impose exclusionary terms of sale where the float glass manufacturers might be foreclosed from purchasing soda ash from other sources; and both partners could agree on customer/territorial restrictions related to the sale of float glass, fixing or setting the quantity of production, limiting technical development and/or investment---Commission upon detailed review/perusal of the material, documents and facts on record found that partner 2 might have less incentive to take part in any anti-competitive conduct as its sales of soda ash did not account for a substantial part of its turnover and such sales were not limited to glass manufacturer but were made various customers in numerous industries; float glass manufacturers could obtain soda ash from sources other than partner 2 on competitive pricing conditions---Merger was approved subject to the conditions that the undertakings would not impose any exclusive/restrictive conditions and/or enter into any agreements amongst each other and/or rival undertakings which might be anti-competitive in nature; that partner 1 would not impose any conditions on the joint venture company in relation to production, supply and/or distribution of their respective products; that the partners would not apply any dissimilar…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492