Competition Commission of India (CCI), the fair trade regulator, has given its approval to merge Shree Uttam Steel and Power (SUSPL) with Uttam Galva Steels (UGSL).

Uttam Galva and two other associate companies hold about 97 per cent stake in Shree Uttam Steel and Power.

CCI claims that the proposed amalgamation is not likely to have an adverse effect on competition in India.

The board of Uttam Galva, manufacturer of galvanised steel, has also given its approval for the proposed scheme of amalgamation, on October 21, 2013.

Also, Shree Uttam Steel and Power has not started manufacturing nor has it undertaken any trading activities in the year 2012-13, and once the manufacturing facilities of SUSPL are established, it will become a backward integration for UGSL.

CCI has also claimed that no penalty will be imposed on Uttam Galva Steel for alleged delay in filing the notice seeking approval of the regulator by the company.