Competition watchdog CCI has approved the proposal of Tata Power to buy remaining 51 per cent stake in Tata BP Solar from joint venture partner BP Alternative Energy Holdings.
In an order, the Competition Commission of India noted that TPCL (Tata Power) and TBCL (Tata BP Solar) are not engaged in production, supply, distribution, storage, sale or trade of “similar or identical or substitutable goods or provision of services“.
“The proposed acquisition of further 51 per cent of the equity share capital of TBSL and other securities, if any, by TPCL is not likely to create any adverse competition concern... the Commission hereby approves the proposed combination under section(1)of section 31 of the Act,” it said.
The Commission further said that while TBSL is concentrated mainly on the manufacturing and development of solar energy related business, such as solar modules and solar cells, TPCL is engaged in generation, transmission, distribution and trading of power.
“Their individual or combined share in the markets involving engagement at different stages or levels of production chain is also not substantial,” CCI noted.
In December last year, Tata Power had announced it would acquire the remaining 51 per cent stake in the joint venture.
On completion of transaction, Tata Power will own 100 per cent of the company, it had said.
Tata Power and BP have agreed that the company will continue to enjoy access to certain BP technology until 2013.
The company and BP will enter into a technology agreement to give effect to this understanding, Tata Power had said.
Tata BP Solar India was incorporated as a joint venture between Tata Exports Ltd (renamed Tata International Ltd) and BP Solar India Holdings Ltd (renamed BP Alternative Energy Holdings Ltd) in 1989 for manufacturing photovoltaic (PV) cells and modules.