The Competition Commission of India (CCI) has approved the merger of Sasan Power Infrastructure with its parent firm Reliance Power, which is promoted by Mr Anil Ambani.
The competition watchdog, in an order, said: “Based on the facts on record and the details provided in the notice filed under sub-section (2) of Section 6, the proposed combination is not likely to give rise to any adverse competition concern ... the Commission hereby approves the proposed combination.”
The CCI further noted that Sasan Power Infrastructure (SPIL) and Reliance Power (RPL) are not engaged in production, supply, distribution, storage, sale or trade of identical or similar goods or provision of services.
“The activities of SPIL and RPL are also not related at different stages of levels of production chain in different markets,” it said, adding, “Further, the control over the activities carried on by SPIL and RPL before and after the proposed combination remains with the management of RPL.’’
Reliance Power is engaged in the development, construction and operation of power generation projects, and development of coal mines associated with such projects.
The CCI added that in its filing that Reliance Power has stated that Sasan Power (RPL’s wholly owned subsidiary) is currently not carrying on any business activities and is holding investments in the group companies. It is to be noted that SPIL is not implementing the Sasan ultra-mega power project.
The Competition Commission of India is empowered by an Act of Parliament to scan high voltage merger and acquisition deals.
Under the Competition Act, 2002, companies with a turnover of more than Rs 1,500 crore will have to approach the CCI for approval before merging with another firm. Also, companies with combined assets of Rs 1,000 crore or more, or a combined turnover of Rs 3,000 crore or more, would require the CCI’s nod.