Welspun Corp in March had said it will sell its assets worth Rs 940 crore to two companies -- Laptev Finance and Welspun Captive Power Generation.
The firm further said it has signed an agreement with Laptev Finance to sell its plates and coils mill division for Rs 848.5 crore.
"The Board of Directors of the Company at its meeting held on March 30, 2019...approved the slump sale of the business undertaking of the Company viz Plates and Coils Mill Division (PCMD) to Laptev Finance Pvt Ltd," Welspun Corp had said in a regulatory filing.
Giving nod to the deal, the Competition Commission of India (CCI) on Monday tweeted that it "approves the acquisition of the 'Plates & Coils Mill Division' from Welspun Corp Limited by Laptev Finance Private Limited."
In a combination notice, CCI said "Welspun Corp Ltd and Laptev entered into a business transfer agreement on 31 March 2019, wherein Welspun has agreed to sell, assign, transfer, convey and deliver, and Laptev has agreed to purchase and acquire the Target Business from Welspun as a going concern on a slump sale basis."
"The proposed combination would allow Laptev to bolster its business of buying, selling, reselling, exporting, importing and trading of all kinds of steel products," it added.
Laptev is in the business of buying, selling, reselling, exporting, importing and trading steel goods among others while Welspun Corp is the flagship company of Welspun Group, which is among the largest welded line pipe manufacturing companies in the world, the CCI said in a release. SRS ANU