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Overview of CCI’s Approval for Stake Acquisitions and Merging of Firm

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three Odisha power utilitiesOn June 08, 2021, The Competition Commission of India (CCI) approved the following proposed acquisitions and merging of firms.

  • Tata Power’s 51 percent acquisition of three Odisha power utilities
  • ReNew Power merger with RMG II
  • BCP Topco, other entities’ acquisition of the stake in Mphasis
  • Byju’s acquisition of Aakash Educational Services

a.Tata Power’s 51% acquisition of 3 Odisha power utilities

Competition Commission of India (CCI) has approved Tata Power Company Limited’s (TPCL) proposed purchase of 51 percent stake each in 3 power utilities in Odisha viz, Western Electricity Supply Company of Odisha (WESCO) Utility, Southern Electricity Supply Company of Odisha Ltd (SOUTHCO) Utility, and Central Electricity Supply Company of Odisha Ltd (CESCO) Utility from Grid Corporation of Odisha Limited (GRIDCO).

  • WESCO Utility, SOUTHCO Utility, and CESCO Utility were engaged in the business of distribution and retail supply of power in different districts of Odisha.
  • TPCL, a part of the Tata group, is a publicly listed company that is primarily engaged in the business of power generation, transmission and distribution.

b.ReNew Power merger with RMG II

i.CCI approved exchange of equity shareholding by existing shareholders of ReNew Power Private Limited (ReNew Power) with shares of ReNew Global, along with a reverse triangular merger of the subsidiary of ReNew Global with RMG II.

  • ReNew Power is into generating electricity through non-conventional and renewable energy sources.
  • This deal would lead to the 1st major overseas listing of an Indian company via the Special Purpose Acquisition Company (SPAC) route.

ii.SPAC – It is a shell or blank-check company that aims to raise capital via an initial public offering(IPO) to acquire a private business at a later date and then take it public without going through the traditional IPO route.

iii.A blank-check company is a firm under the developmental stage, and it also does not have an established business plan.

c.BCP Topco, other entities’ acquisition of the stake in Mphasis

i.CCI approved the acquisition of Mphasis Limited by BCP Topco IX Pte. Ltd. (BCP Topco), Waverly Pte Ltd. (GIC Investor) and Platinum Owl C 2018 RSC Limited (Abu Dhabi Investment Authority (ADIA) Investor).

  • Under the proposed acquisition 75% shareholding in Mphasis Limited will be acquired by BCP Topco through a series of inter-connected transactions.
  • Mphasis Ltd is a global information technology (IT) service provider company registered under the Companies Act, 1956.

ii.BCP Topco is a private limited company, incorporated under the laws of Singapore.

iii.GIC Investor, a part of a GIC Special Investments Private Limited is a private limited company in Singapore.

iv.Platinum Owl is a trustee for Platinum Jasmine Trust. ADIA is the sole beneficiary and settlor of the Platinum Jasmine Trust.

d.Byju’s acquisition of Aakash Educational Services

CCI approved the acquisition of a certain stake of Aakash Educational Services Limited (AESL) by BYJU’S Think & Learn Private Limited in a cash and stock deal estimated at $950 million, sealing its largest buyout. BYJU’S will acquire complete and sole control over AESL.

Byju’s buyout of AESL is also among the largest acquisitions by an Indian startup.

Recent Related News:

On May 20, 2020, Tata Power announced that its subsidiary Tata Power International Pte Ltd(TPIPL) has acquired a 10% stake in Adjaristsqali Netherlands BV(ABV) from the International Finance Corporation(IFC) for USD 150,000 (about Rs 1.13 crore). The increase in stake has increased TPIPL’s shareholding in ABV to 50%.

About Tata Power Company Limited (TPCL):

Headquarters – Mumbai, Maharashtra
CEO & MD – Praveer Sinha
Chairman – Natarajan Chandrasekaran

ReNew Power Private Limited (ReNew Power):

Establishment – 2011
Headquarters – Gurugram, Haryana
Chairman and Managing Director – Sumant Sinha

About Byjus:

Establishment – 2011
Headquarters -Bangalore, Karnataka
Founder – Byju Raveendran