The Competition Commission of India has approved Nippon Steel Corporation’s proposal to acquire the remaining 53.4 per cent stake in Krosaki Harima Corporation, paving the way for full ownership of the Japanese refractory maker.

Nippon Steel currently holds 46.6 per cent in Krosaki. Following completion of the transaction, its shareholding will rise to 100 per cent. The regulator said the proposed combination involves the acquisition through a tender offer, along with a potential squeeze-out, if applicable.

In India, Nippon Steel is engaged in manufacturing tubes and pipes, processing automotive cold-rolled steel sheets, crankshafts and auto components, and importing and selling a range of steel products. Krosaki, a listed company in Japan, operates in India through affiliate entities that manufacture and sell refractory products, supplying industries such as iron and steel, lime, aluminium, power, cement and copper.

In August last year, Nippon Steel announced plans to acquire all outstanding shares of Krosaki through a tender offer, with the objective of making it a wholly owned subsidiary, as part of its strategy to consolidate control over the business.

Transactions crossing prescribed thresholds require clearance from the CCI, which oversees competition and seeks to prevent unfair business practices while promoting a level playing field in the market.