CCI approves acquisition of 49.86% stake in Sabarmati Gas Limited(SGL) by PSU petroleum companies –

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CCI approves acquisition of 49.86% stake in Sabarmati Gas Limited(SGL) by PSU petroleum companies –

February 10, 2016 Leave a commentMergers, News and EventsBy M M SHARMA

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)

About the author

M M SHARMA

 Comdt. (Retd.) M. M. Sharma heads the Competition Law & Policy team in VA since 2009 and has over 30 years’ experience as an Advocate of Delhi High Court and holds a Post Graduate Diploma in Economics of Competition Law from Kings College, London. He has worked in the Competition Commission of India (CCI) as Additional Registrar during 2006-2008 and was responsible for drafting the Implementing Regulations under the Competition Act, 2002. He has experience of working as Head-Legal /In-house Counsel for a large Corporate Group in the Steel and Power sector before joining VA in 2009. He has represented clients as an independent arguing Counsel in landmark cases decided by CCI, the Competition Appellate Tribunal (COMPAT) , High Courts and the Supreme Court. As a prolific writer, he contributes articles and is regularly quoted on competition issues in National Newspapers and interviewed by TV Channels. He also teaches as a visiting faculty in various Universities and Institutions and is widely regarded as a subject expert in various Committees of Apex Business Chambers, such as FICCI, CII, ASSOCHAM and PHD CCI.  Mr. Sharma has been mentioned as a “Notable Practitioner” in the “Competition/Antitrust” category of Chambers & Partners (Asia Pacific) Ranking of Leading Lawyers for Business in India for the year 2012 and 2013. VA’s competition law and policy team has also been awarded the Law Firm of the Year Award for “Competition/Antitrust Law” for 2013 by the Indian Business Law Journal. Included as a ‘Recognised Practitioner’ in Individual Lawyers’ranking by Chamber’s Asia Pacific Guide 2020 for Antitrust/Competition Law.

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