On 3rd December 2024, the Competition Commission of India (CCI) has approved various proposals:
i.It has approved the acquisition of certain shareholding of New Delhi(Delhi) based Shiprocket Private Limited (Shiprocket) by Tokyo (Japan)-based MUFG Bank Limited, which is a wholly-owned subsidiary of Mitsubishi UFJ Financial Group, Inc. (MUFG).
ii.Similarly, it has approved the acquisition of certain shareholding of Shiprocket Private Limited (Shiprocket) by United States of America (USA)-based early venture capital firm, KDT Venture Holdings, LLC (KDT).
iii.It has also approved the subscription to Optionally Convertible Debentures (OCDs) of Bengaluru(Karnataka) based GMR Infra Enterprises Private Limited by Platinum Stone A 2014 Trust, a trust established under the United Arab Emirates(UAE) based Abu Dhabi Global Market, with its sole beneficiary being the Abu Dhabi Investment Authority (ADIA).
CCI Approved the Acquisition of Certain Shareholding of Shiprocket Pvt. Ltd. by MUFG Bank Ltd.
The CCI has approved the acquisition of certain shareholding of Shiprocket Private Limited (Shiprocket) by Tokyo (Japan)-based MUFG Bank Limited, which is a wholly-owned subsidiary of Mitsubishi UFJ Financial Group, Inc. (MUFG).
- In this proposed arrangement, Shiprocket Private Limited will be the target, which operates a logistics platform and provides logistic services to other businesses, domestically and internationally, via logistics service providers listed on its platform and MUFG Bank Limited will be the acquirer, which is engaged in banking services in India.
CCI Granted Approval to KDT Venture Holdings, LLC Proposal to Buy Stakes in Shiprocket Pvt. Ltd.
The CCI has also granted its approval to the United States of America (USA)-based early venture capital firm, KDT Venture Holdings, LLC (KDT) proposal of acquiring certain stakes in Shiprocket Private Limited (Shiprocket).
- In this proposed arrangement, Shiprocket Private Limited will be the target company and KDT Venture Holdings, LLC, a 100% subsidiary of Koch, Inc., will be the acquirer. It invests in startups in countries like: the USA, Israel, and the United Kingdom (UK) in various sectors like: healthcare, supply chain and manufacturing, cyber security, among others.
- This acquisition aimed to strengthen Shiprocket’s capabilities by using the expertise of KDT in supply chain innovation and international best practices.
CCI Approved Subscription to OCDs of GMR Infra Enterprises Pvt. Ltd. by Platinum Rock B 2014
The CCI has approved the subscription to Optionally Convertible Debentures (OCDs) of GMR Infra Enterprises Private Limited by Platinum Stone A 2014 Trust, a trust established under the Abu Dhabi Global Market, with its sole beneficiary being the Abu Dhabi Investment Authority (ADIA).
- As per CCI, the proposed combination involves subscription to unlisted and unrated OCDs of GMR Infra which will be Target Special Purpose Vehicle (SPV) by Platinum Stone A 2014 Trust (acting through its trustee Platinum Rock B 2014 RSC Ltd.) which will be the acquirer.
Note:Â ADIA is a public institution set by the Government of the Emirate of Abu Dhabi as an independent investment institution.
Key Points:
i.Both before and after the subscription of OCDs, GMR Infra Enterprises will acquire a cumulative of nearly 9% of the stake on a fully diluted basis of GMR Airports Limited (GAL)from its promoter i.e. GMR Enterprises Private Limited (GEPL).
ii.The acquisition of shares of GAL by the target SPV will be pledged in favour of the acquirer with a view to secure the OCD subscription amount (proposed combination).
iii.In October 2024, GMR Group received Rs 6, 300 crore debt funding from the ADIA and the proceeds will be used for refinancing debt of its promoter group entity GEPL.
About Competition Commission of India(CCI):
It is a statutory body constituted under Competition Act, 2002.
Chairman- Ravneet Kaur
Headquarters- New Delhi, Delhi
Established- 2003
