On September 29, 2022, the Competition Commission of India (CCI), the fair trade regulator, has approved the following acquisitions:
i.Acquisition of Assets of Essar Group by ArcelorMittal Nippon Steel India Limited
ii.Acquisition of the share capital of eighteen subsidiaries of Mytrah Energy (India) Private Limited by JSW Neo Energy Limited
iii.Acquisition of share capital of Diliigent Power Private Limited and DB Power Limited by Adani Power Limited
CCI Approves Acquisition of Assets of Essar Group by ArcelorMittal Nippon Steel India Limited
The CCI has approved the acquisition of assets of Essar Group by ArcelorMittal Nippon Steel India Limited.
Acquirer – ArcerlorMittal Nippon Steel India Limited (AMNS)
- AMNS is a joint venture between ArcelorMittal S.A (AM) and its affiliates and Nippon Steel Corporation (NSC), Japan.
Target – Essar Group (EG)
The following Essar Group (EG) assets would be acquired as part of the proposed combination:
- Power Assets (Essar Power Hazira Limited (EPHL), Gandhar Hazira Transmission Limited (GHTL));
- Port Assets (Hazira Cargo Terminals Limited (HCTL), Ibrox Aviation & Trading Private Limited (IATPL), Essar Bulk Terminal Limited (EBTL), Essar Bulk Terminal Paradip Limited (EBTPL), Essar Vizag Terminals Limited (EVTL));
- Other Assets (Snow White Agencies Private Limited (SWAPL), Bhagwat Steel Limited (BSL))
CCI Approves Acquisition of Share Capital of 18 Subsidiaries of Mytrah Energy (India) Private Limited by JSW Neo Energy Limited
The CCI has given its approval for JSW Neo Energy Limited to acquire the share capital of 18 subsidiaries of Mytrah Energy (India) Private Limited pursuant to Section 31(1) of the Competition Act, 2002.
Acquirer – JSW Neo Energy Limited, a fully owned subsidiary of JSW Energy Limited (“JEL”)
- It was established as part of JEL’s proposed reorganization of its energy business into grey (thermal) and green (renewable) categories.
- It produces electricity using renewable energy sources like solar and hydropower.
Targets –18 subsidiaries of Mytrah Energy (India) Private Limited (Mytrah)
- These subsidiaries generate power using renewable energy sources such as wind and solar.
i.The “Acquirer” would purchase a shareholding in the “Targets” through individual share purchase agreements in the proposed combination.
ii.The “Acquirer” will acquire a 1,753 Megawatt (MW) operational renewable portfolio.
CCI Approves Acquisition of Share Capital of Diliigent Power Private Limited and DB Power Limited by Adani Power Limited
The CCI has given its approval for Adani Power Ltd. to acquire 100% of the share capital and economic rights of Diliigent Power Private Limited and DB Power Limited.
Acquirer – Adani Power Ltd., a public listed company whose shares are traded on the BSE Limited & the National Stock Exchange of India Limited.
- It is an Indian power company with eight active power plants.
- It has a total capacity of 13,650 MW, with thermal power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, and Chhattisgarh & a 40 MW solar power project in Gujarat.
Targets – Diliigent Power Private Limited & DB Power Limited
- Diliigent Power mainly performs operations as a holding company. It also offers project management and consultancy services, exclusively for DB Power.
- DB Power has a coal-based thermal power plant with a 1200 MW/hr (MW per hour) installed capacity in Chhattisgarh.
Recent Related News:
In August, 2022, the CCI approved the proposal of Rs 4,500 crore deal wherein the Bandhan Financial Holdings (BFHL)-led consortium will buy stakes in IDFC Asset Management Company Ltd and IDFC AMC Trustee. The consortium consists of Bandhan Bank’s parent BFHL, private equity firm ChrysCapital and Singapore’s sovereign fund GIC.
About Competition Commission of India (CCI):
Chairperson – Ashok Kumar Gupta
Establishment – 2003
Headquarters – New Delhi, Delhi