13 October, 2014
On August 21, 2014, CCI approved the proposed subscription of compulsorily convertible preference shares (‘CCPS’) and equity shares of Larsen & Toubro Infrastructure Development Projects Limited (‘L&T IDPL’) by CPP Investment Board Singaporean Holdings Pte Ltd. (‘CPPIB SHPL’).CCI noted that pursuant to the Investment Agreement between CPPIB SHPL, Larsen and Toubro, L&T IDPL and a minor shareholder of L&T IDPL, CPPIB SHPL would, post-conversion of CCPS, acquire not more than 49% of the equity share capital of L&T IDPL.
CCI noted that CPPIB SHPL and L&T IDPL were involved in different areas of business as L&T IDPL was engaged in undertaking infrastructure projects while CPPIB SHPL was engaged in making investments in various companies. Though CPPID had minor shareholdings in some companies, engaged in infrastructure development, CCI noted that the horizontal overlaps and vertical relationships were too insignificant to raise any competition concern and approved the proposed combination. Accordingly, CCI approved the proposed acquisition observing that it was not likely to cause an appreciable adverse effect on competition in India.
For further information, please contact:
Zia Mody, AZB & Partners
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Abhijit Joshi, AZB & Partners
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Shuva Mandal, AZB & Partners
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Samir Gandhi, AZB & Partners
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Percy Billimoria, AZB & Partners
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Aditya Bhat, AZB & Partners
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