On December 29, 2021, CCI approved the acquisition of 96.42% equity shareholding in Jindal Power Limited (‘JPL’) by Worldone Private Limited (‘Worldone’).
Worldone is an investment holding company which has investments in various listed and unlisted companies, including JPL. The shareholding of Worldone is held by Mr. Naveen Jindal and his family (collectively, ‘Jindal Group’). JPL is a subsidiary of Jindal Steel & Power Ltd (‘JSPL’) and is indirectly controlled by the Jindal Group. JPL is engaged in the business of generating coal-based thermal power while the other Jindal Group entities including JSPL are engaged in the business of manufacturing steel and captive thermal power generation. Additionally, JSPL operates two transmission lines, owns steel plants, distributes power to another group entity controlled by the Jindal Group and is engaged in the business of mining, infrastructure, and providing construction solutions.
The parties submitted that there were no horizontal overlaps. However, the following actual or potential vertical overlaps were identified: (i) JPL’s business in the upstream market for coal-based power generation in India vis-à-vis JSPL’s business in the market for transmission of power in India; (ii) JPL’s business in the upstream market for transmission of power in India and of JSPL in the downstream segment for distribution of power in the state of Chhattisgarh; and (iii) JPL’s business in the upstream market for coal-based power generation in India by JPL and the business of JSPL in the downstream segment for distribution of power in the state of Chhattisgarh.
CCI decided to leave the precise delineation of the relevant market(s) open and observed that the proposed combination was unlikely to cause an AAEC in India due to, (i) the insignificant combined market share of the parties in each of the above identified markets/segments; (ii) presence of other players in each of the relevant market/segments; and (iii) the power generation capacity and the transmission infrastructure is mainly used by Worldone/Jindal Group for the captive purposes. Accordingly, CCI approved the proposed combination under Section 31(1) of the Act.
 Combination Registration No. C-2021/11/880.