Mumbai, Nov. 5 -- The Competition Commission of India (CCI) has approved Aditya Birla Renewables' acquisition of Solenergi Power, which owns the Sprng Energy group, for an enterprise value of Rs. 172 bn. The transaction, valued at USD 1.8 bn, is expected to create one of India's largest integrated renewable energy platforms once completed.
Aditya Birla Renewables, a unit of Grasim Industries, will acquire 100 per cent of Solenergi Power's issued share capital from Shell Overseas Investment BV. Solenergi Power is registered in Mauritius and operates as a holding company, with its Indian presence coming through downstream entities involved in solar and wind power generation.
The acquisition will add about 5 GWp of contracted renewable energy capacity to Aditya Birla Renewables' portfolio. This includes approximately 3.3 GWp of operational assets and 1.7 GWp under construction, taking the company's combined portfolio to about 9.3 GWp.
The transaction will be funded through a combination of debt and equity provided by Grasim Industries and funds managed by Global Infrastructure Partners, which is part of BlackRock. Aditya Birla Renewables had announced the agreement to acquire Sprng Energy from Shell Overseas Investment BV in July.
In a separate decision, the CCI approved the proposed merger of Sapphire Foods India with and into Devyani International, along with related transactions. Both companies operate franchise outlets for KFC and Pizza Hut across India, while Devyani is also the exclusive franchisee of Costa Coffee, New York Fries and Sanook Kitchen in the country and operates homegrown brands.
The regulator examines combinations that cross prescribed thresholds and monitors practices that could undermine fair competition. Its approval is required for transactions meeting those thresholds before the relevant deals can proceed.
Published by HT Digital Content Services with permission from Construction World.