CCI Approves Acquisition of 89.6% Shareholding in Gangavaram Port Limited by Adani Ports and Special Economic Zones Limited

On April 12, 2021, CCI approved the acquisition of 89.6% shareholding in Gangavaram Port Limited (‘GPL’) by Adani Ports and Special Economic Zones Limited (‘APSEZ’). [1]

APSEZ is a private sector port operator and provides inter alia services such as (i) full marine services including pilotage & towage of vessels, berthing and de-berthing; (ii) cargo handling services; and (iii) value added services such as bagging and packaging.

GPL is a special purpose vehicle promoted for designing, owning, engineering, developing, financing, procuring, constructing, operating and maintaining and transferring a green-field, all-weather, deep water, multi-purpose port at Gangavaram, Andhra Pradesh on Build-Own-Operate-Transfer (BOOT) basis. It provides cargo handling and marine services including but not limited to pilotage, berth hire, wharfage, stevedoring, railway rake loading, transporting by rail and road, storing and other activities within its port premises.

Based on the business activities of parties, CCI noted that they exhibit overlap in segment of coal and dry bulk cargo. However, the volumes of cargo handled by the parties are not significant to cause any competition concern.

CCI further observed that APSEZ’s coal trading activities, logistics and dredging and reclamation services exhibit vertical overlaps with the GPL’s port related activities. However, CCI found the extent of overlaps in GPL’s upstream businesses to not have any AAEC.

Based on the above, CCI held that the transaction is not likely to have an AAEC in India and approved it accordingly.

 

[1] Combination Registration No. C-2021/03/819 .

Published In:Inter Alia Special Edition - Competition Law - September 2021 [ English
Date: September 16, 2021