CCI approves merger of DLF Construction & DLF Hotels and Apartments with DLF Projects

The Competition Commission of India has approved the merger of DLF Construction and DLF Hotels and Apartments with DLF Projects. All the three companies are wholly owned subsidiaries of DLF Ltd. The three companies had filed a joint notice on February 10, 2012 with the CCI under sub-section (2) of Section 6 of the Competition Act, 2002. DLF Construction is an unlisted public limited company and is engaged in the business of construction and project development for the DLF group of companies. DLF Hotels and Apartments is a private limited company and is engaged in the business of interior fit-outs and furnishings in the apartments constructed by DLF. DLF Projects is an unlisted public limited company and also does construction and project development/management for DLF. Companies that are going in for a merger of group entities need to notify CCI. ""Since the investigation found that there were no competition issues with the proposed merger we have decided to give it a go ahead. But we will continue to keep a close watch on the real estate sector,"" said a CCI official on conditions of anonymity. The CCI order said: "Based on the facts on record and the details provided in the notice, it is observed that the parties to the combination, directly or indirectly, are wholly owned subsidiaries of DLF Limited and the ultimate control over the activities carried out by the parties to the combination, before and after the proposed combination, would remain with DLF Limited and the proposed combination is not likely to give rise to any adverse competition concern." Source: http://articles.economictimes.indiatimes.com/2012-03-10/news/31143153_1_dlf-projects-adverse-competition-concern-cci