CCI Approves Acquisitions between Orix and GEH & Sinochem, ChemChina and Central SASAC

On November 12, 2020 The Competition Commission of India (CCI) approved the following acquisitions under Section 31(1) of the Competition Act, 2002.

Approval for acquisition between Orix and GEH

i.CCI approved the acquisition of Greenko Energy Holdings (GEH) from Orix Wind SPVs, ORIX Corporation (Orix).

ii.As per the proposed combination GEH (and/or a subsidiary of GEH) will acquire the
Orix Wind SPVs’s equity stake from Orix. After this Oris will acquire equity stake in GEH.

Approved transfer of 100% shareholding of Sinochem & ChemChina to new company wholly owned by China’s Central SASAC

i.CCI approved the transfer of 100% shareholding of Sinochem Group Company Limited (Sinochem) and China National Chemical Corporation Limited (ChemChina) to State-owned Assets Supervision and Administration (Central SASAC),  a new company wholly owned by China.

ii.It is to be noted that the new holding company is still not incorporated and accordingly has no business activity.

Key Info about the Companies:

Greenko Energy Holdings

• It is the holding company of the Greenko group of companies.
• The main business activity of GEH’s Indian subsidiaries is to own, upgrade, build and maintain power generation projects.

ORIX Corporation

• It is the holding company of the Orix group of companies.
• It offers a wide range of services including corporate financial service, maintenance leasing, real estate and  private equity investments among others.

Orix Wind SPVs 

• Orix Wind SPVs are subsidiaries of Orix.
• They are mainly engaged in power generation and associated services.

Sinochem Group Company Limited 

• It is engaged in a wide variety of businesses globally.
• In India, it is directly or indirectly, mainly engaged in the following businesses namely, Sale of crude oil, natural rubber and rubber antioxidants, variety of chemicals, including agrochemicals & pharma and health products.
• It is headquartered in China.

China National Chemical Corporation Limited 

• It is also engaged in a wide range of businesses globally
• In India, it is primarily engaged in the following businesses namely, Sale of chemical products, passenger car tires, bus and truck tires and solar PV module.
• It is headquartered in China.

Gist about Competition Act, 2002:

i.The Competition Act, 2002 was amended by the Competition (Amendment) Act, 2007.

ii.The act forbids the anti-competitive agreements, abuse of dominant position by enterprises and regulates combinations (acquisition, acquiring of control and M&A- Merger and Acquisition), that may or may not have a significant adverse effect on competition within India

Recent Related News:

On September 29, 2020 The Competition Commission of India (CCI) under Section 31(1) of the Competition Act, 2002 has approved the acquisition of certain real estate projects of RMZ Group and 100% equity shareholding in CoWrks India Pvt Ltd. by Brookfield Private Capital (DIFC-Dubai International Financial Centre) Limited.

About Competition Commission of India (CCI) :
Headquarters– New Delhi, India
Chairman– Ashok Kumar Gupta
Established by– The Central Government with effect from 14th October 2003