Tetra Laval, a part of the Tetra Laval Group, has got a reprieve from the competition watchdog. The company was in dock for not giving prior notice on its acquisition of shares in Alfa Laval AB.
Tetra Laval is focused on the liquid food industry, whereas most of Alfa Laval's activities cover sectors such as non-liquid, chemicals, pharmaceuticals and mining. Both the players, however, deal in heat transfer equipment, separation and flow equipment.
Tetra Laval had through a series of share purchase agreement on the Stockholm Stock Exchange increased the shareholdings in Alfa Laval from 18.83 per cent to 23.16 per cent. Alfa Laval is the Indian subsidiary of Alfa Laval Corporate AB.
Under the combination regulations, which came into force from June last year, require acquirers to file a notice with the Competition Commission of India (CCI), disclosing the details of any share acquisition where the cumulative holding through combination would exceed 15 per cent in the target company.
CCI observed that Tetra Laval had given belated notice to the Commission after complete acquisition of shares in Alfa Laval. It, however, said that shareholding was non-controlling in nature.
However, the anti-monopoly watchdog said that it had decided not to initiate penalty on Tetra Laval as this was the first year of implementation of the Combinations in the Act.