CCI, by its order dated February 10, 2016, has approved acquisition of 49.86% stake in SGL by Gujarat State Petroleum Corporation Limited (“GSPC”); Gujarat State Petronet Limited (“GSPL”); and Bharat Petroleum Corporation Limited (“BPCL”). The stake proposed to be acquired in currently being held by India Infrastructure Development Fund (“IIDF”), India Infrastructure Fund (“IIF”) and IFCI Venture Capital Funds Limited (“IFCI”) (collectively called “Investors”) in equal proportions.
GSPC is engaged in exploration and production, gas transmission, city gas distribution and power generation, etc. GSPL is involved in building the infrastructure for transmission of natural gas across the state of Gujarat allowing last-mile linkage to the end-user. BPCL is a public limited company primarily engaged in the business of refining and marketing of oil and gas. SGL operates a city gas distribution network in the districts of Gandhinagar, Mehsana and Sabarkantha in Northern Gujarat.
The CCI noted that the proposed combination envisages exit of Investors and keeping in view the nature of their existing affirmative veto rights observed that the exit of Investors is not likely to result in a change in competition dynamics in any market in India and the proposed combination is thus not likely to result in an appreciable adverse effect on competition in any of the markets in India. Consequently, the proposed combination has been approved.
(Source: CCI Order dated February 10, 2016. For full text see CCI website)