CCI Approves Acquisition of Shares in Adani Krishnapatnam Port Limited by Adani Ports and Special Economic Zones Limited

On May 17, 2021, CCI approved Adani Ports and Special Economic Zones Limited’s (‘APSEZ’) additional acquisition of 25% shareholding in Adani Krishnapatnam Port Limited (‘AKPL’). Resultantly, APSEZ would hold 100% of the shareholding of AKPL.[1] On June 22, 2020, CCI had previously approved APSEZ’s initial acquisition of 75% shareholding in AKPL.

APSEZ is a private multi-port operator providing integrated port infrastructure services. APSEZ inter alia provides the following services through the ports it operates: (a) full marine services including pilotage & towage of vessels, berthing and de-berthing; (b) cargo handling services – loading and unloading of cargo from vessels, movement of cargo to and from port stack yard to berth and vice-versa, storage for cargo, loading and unloading of cargo onto trucks or railway rakes for transportation; and (c) value added services such as bagging and packaging. APSEZ also provides dredging and reclamation solutions primarily for port and harbour construction. APSEZ maintains a fleet of dredgers, support vessels and equipment such as multi utility crafts, survey vessels, floating cranes, jack up barges. APSEZ also manages complete logistics chain through its subsidiary, Adani Logistics Limited, which is an asset and service based end-to-end logistics service provider across container, bulk, breakbulk, and liquid industries, operating various multi-modal ports.

AKPL is engaged as a developer and operator of an all-weather, deep-water multipurpose port located at Krishnapatnam, Andhra Pradesh, under a Build-Operate-Share-Transfer concession from the Government of Andhra Pradesh. It provides integrated cargo handling and marine services including pilotage, berth hire, wharfage, stevedoring, railway rake loading, transporting, storing and other activities within the port premises.

CCI noted that the factors governing assessment of the proposed combination were largely the same as at the time when it issued its order on approving APSEZ’s initial acquisition of 75% of the shareholding in AKPL.  Accordingly, CCI approved the proposed combination under Section 31(1) of the Act.

 

[1]  Combination Registration No. C-2021/04/828.

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