Green flag for LG Lifesciences & LG Chem merger
The Competition Commission of India has granted the merger of LG Lifesciences into LG Chem. Both the companies belong to LG Corporation.

LG Chem, a company incorporated in Korea, organizes its business in four divisions, viz., Basic materials and Chemicals Division; Energy Solutions Division; IT and Electronic Materials Division; and Advanced Materials Division. Basic materials and Chemicals Division is engaged in production of basic petrochemicals such as ethylene, propylene etc., polyolefin products, PVC/Plasticizers, Acrylates, engineering plastics used in electric /electronics, automotive and IT & electronic parts; Acrylonitrile butadiene styrene; and Rubber/Specialty Polymers. Energy Solutions Division is engaged in production of mobile batteries, automotive batteries and energy storage systems; IT and Electronic Materials Division is engaged in production of Optical materials, RO Filters, Glass substrates and High functional materials; and Advanced Materials Division is engaged in production of specialty chemical materials such as battery materials and display materials .

LG LS, a company incorporated in Korea, is also a part of the LG Corporation . The primary business areas of LG LS are pharmaceutical products (including animal health business) and specialty chemicals. The specialty chemicals include two main business segments - active ingredients (actives) for agrochemicals and pharmaceutical intermediates.

It is noted from the information given in the notice that there is no horizontal overlap between LG Chem and LG LS in India. As regards vertical relationships emanating from the Proposed Combination, the Commission noted that LG Chem supplies acetone to LG LS; the latter uses the same for contract manufacture of cephalosporin antibiotics which is then sold to a third party pharmaceutical company. The third party pharmaceutical company sells the products sourced from LG LS under its brand name across the world, including in India. In this regard, the Commission observed that the nature and extent of existing customer supplier relationship is insignificant to cause any competition concerns.