CCI nod for South Korean steel maker POSCO Group’s intra-group restructuring

The Competition Commission of India (CCI) has given it’s approval for global steel giant POSCO Group’s intra-group restructuring by acquiring the entire shareholding of LX International Corporation in POSCO-India Pune Processing Centre Private Ltd (IPPC). 

The acquisition will be executed by POSCO-India Processing Centre Private Ltd (PIPC), a subsidiary of POSCO Holdings Inc.

“CCI approves the proposed acquisition of certain shareholding in POSCO – India Pune Processing Centre Private Ltd by POSCO India Processing Centre Private Ltd,” said a social media post in platform “X”. 

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.

Market impact

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.

Strategic objectives

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 acquisition comes at a time when India’s steel demand is expected to grow significantly, driven by government initiatives such as Make in India and expanding infrastructure development. 

POSCO Group’s restructuring aims to better position the company to meet this rising demand and strengthen its leadership in the value-added steel segment.

Industry implications

Market experts believe that POSCO’s move aligns with broader industry trends of consolidation and specialisation, as companies seek to optimise their supply chains and adapt to evolving market conditions. “Such realignments enable companies to leverage synergies within the group and enhance operational efficiency,” said a leading steel industry analyst.