Competition Commission of India approves proposed acquisition of Lanco Amarkantak Power Limited

The Competition Commission of India (CCI) on Tuesday granted approval to the acquisition of Lanco Amarkantak Power by PPL (Power Finance Corporation Projects Limited), REC (formerly Rural Electrification Corporation Limited), SJVN (formerly known as Satluj Jal Vidyut Nigam) and Damodar Valley Corporation.

The proposed combination relates to acquisition of 100 per cent shareholding of Lanco Amarkantak Power by PFC Projects, REC, SJVN and Damodar Valley Corporation (DVC), according to an official release.

Who are the acquirers?

PPL is a wholly owned subsidiary of Power Finance Corporation Limited (PFC), a Government of India undertaking. PPL has been set up to, inter alia, carry out the business of power generation and distribution. 

REC is a subsidiary of PFC. It is presently a non-banking financial company categorized as an infrastructure finance company by the Reserve Bank of India.

SJVN is a listed company held by the Government of Himachal Pradesh and public shareholders. At present, SJVN is implementing and operating projects in, inter alia, the States of Himachal Pradesh, Uttarakhand, Bihar, Maharashtra, and Uttar Pradesh in India

C-2023/08/1051 Commission approves the proposed acquisition of 100% shareholding of Lanco Amarkantak Power Limited by PFC Projects Limited, REC Limited, SJVN Limited and Damodar Valley Corporation. #CCIMerger #Mergers pic.twitter.com/LrOfZIyFO0

— CCI (@CCI_India) October 3, 2023

DVC is a statutory corporation set up under the Damodar Valley Corporation Act, 1948. It is engaged in the businesses of, inter alia, power generation, transmission, and water management in India.

Lanco Amarkantak Power Ltd (LAPL) is an unlisted public limited company engaged in power generation in India.

The Competition Commission of India (CCI) said it has approved the proposed deal.

Deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices and promotes fair competition in the marketplace.