CCI’s Assessment and Regulatory Clearance
After examining the structure of the transaction and its potential impact on competition in India, the CCI concluded that the acquisition is unlikely to have an appreciable adverse effect on competition. The approval reflects the regulator’s assessment that the deal does not raise significant horizontal or vertical competition concerns in the Indian market.
The Competition Commission of India functions as the country’s antitrust watchdog and is mandated to review mergers and acquisitions to ensure fair competition. Its clearance indicates that the transaction aligns with India’s competition law framework.
Profile of Nippon Steel Corporation
Nippon Steel Corporation is one of the world’s leading steel producers, headquartered in Japan. The company has a strong global presence and supplies a wide range of steel products catering to infrastructure, automotive, manufacturing, and energy sectors.
In India, Nippon Steel is engaged in manufacturing tubes and pipes, processing automotive cold-rolled steel sheets, crankshafts, and auto components. It also imports and sells various specialised steel products, making India an important market in its global operations.
Krosaki Harima’s Role in India
Krosaki Harima Corporation is a publicly listed Japanese company specialising in refractory products and services. Refractories play a critical role in high-temperature industrial processes, particularly in steelmaking and other core industries.
In India, Krosaki operates indirectly through its affiliate entities and supplies refractory solutions to iron and steel manufacturing, lime production, aluminium, power generation, cement, copper, and other heavy industries. Its products are considered essential for industrial efficiency and operational safety.
Strategic Significance of the Acquisition
The acquisition is expected to strengthen operational integration between Nippon Steel and Krosaki Harima, allowing closer coordination in technology, production planning, and long-term investment decisions. Full ownership may also simplify governance structures and decision-making processes.
Industry observers note that the move aligns with broader trends among global manufacturing majors to consolidate strategic subsidiaries, especially in sectors linked to core industrial supply chains such as steel and refractories.
Implications for Indian Industry
For India, the transaction underscores continued foreign investment interest in critical industrial segments. Refractory materials are essential for steel capacity expansion, and sustained investment in this area supports India’s infrastructure and manufacturing growth.
The deal also reflects confidence in India’s regulatory environment, where transparent competition oversight enables global firms to undertake long-term strategic investments.
Next Steps
With CCI approval secured, Nippon Steel is expected to proceed with the tender offer process in accordance with applicable laws and regulations. Upon completion, Krosaki Harima will become a wholly owned subsidiary of Nippon Steel Corporation.
The acquisition adds to a series of cross-border transactions cleared by Indian regulators, reinforcing India’s position as a key market in global industrial value chains.
