The Competition Commission of India (CCI) has given the green light to the proposed acquisition of Tower Vision India Private Limited by Ascend Telecom Infrastructure Private Limited and GIP EM Ascend 2 Pte. Ltd.
The proposed combination involves the acquisition of 100% of the shareholding of Tower Vision India Private Limited by Ascend Telecom Infrastructure Private Limited and GIP EM Ascend 2 Pte. Ltd.
Ascend is engaged in providing passive telecommunication infrastructure services through towers in India while GIP EM is presently not engaged in any business operations. The Acquirers are entirely owned by funds/investment vehicles managed by entities that are ultimately controlled by Global Infrastructure Management LLC (GIM LLC).
The Target is controlled by Tower Vision Mauritius Limited and is engaged in the provision of passive telecommunication infrastructure services through towers in India.
The acquisition is expected to benefit both the Acquirers and the Target. With the acquisition, the Acquirers will have access to Target’s passive telecommunication infrastructure services through towers in India, which will complement their existing business operations. Target, on the other hand, will be able to leverage the Acquirers’ resources and expertise to enhance its services and expand its business operations.
The CCI, in its order approving the acquisition, noted that the proposed combination is unlikely to have an appreciable adverse effect on competition in India. They took into consideration various factors, including the nature and extent of vertical relationships between the Acquirers and the Target, the extent of common shareholding, and the presence of other players in the relevant market.
It observed that there are several players operating in the market for the provision of passive telecommunication infrastructure services through towers in India, which indicates the existence of a competitive market.
The CCI’s detailed order on the matter is expected to follow. The approval of the acquisition by the CCI is a significant milestone for both the Acquirers and Target as they look to solidify their positions in the telecommunications infrastructure market in India.