Competition Commission of India has given approval for GMR group’s proposed 49 per cent stake sale in its airport business to France’s Groupe ADP.
The regulator’s clearance is through the green channel, which allows for an automatic system for speedy approval of combinations, subject to certain conditions.
On Thursday, GMR Infrastructure said the French group would acquire 49 per cent stake in its airport business for Rs 10,780 crore, a deal that will help the domestic entity reduce its debt burden.
In a tweet on Friday, the watchdog said it has received “green channel combination filing from Aeroports de Paris SA for acquisition of 49 per cent stake in GMR Airports Ltd and 100 per cent stake in GMR Infra Services Ltd”.
Applications received under the green channel are deemed approved.
Aeroports de Paris SA (ADP) would buy 100 per cent stake in GMR Infra Services Ltd and then 49 per cent shareholding in GMR Airports Ltd (GAL), as per a notice submitted to the regulator.
GMR Infra Services is an operating and holding company. Its primary business is to hold shares in GAL, according to the notice.
Under a share purchase agreement, Groupe ADP would have 49 per cent stake in GAL for an equity consideration of Rs 10,780 crore.
Out of the total amount, Rs 9,780 crore would be towards secondary sale of shares by GMR group and Rs 1,000 crore would be equity infusion in GAL, GMR Infrastructure said in a statement on Thursday.
“As part of the terms of transaction, GMR will retain management control over the Airports Business with Groupe ADP having the customary rights and board representation at GAL & its key subsidiaries,” it had said.
Earlier, GMR group was to enter into a deal with Tatas for the airport business.
A GMR Group spokesperson confirmed that the deal with Tatas has been called off.
GMR Group operates Indira Gandhi International Airport in New Delhi, Hyderabad’s Rajiv Gandhi International Airport and Mactan Cebu International Airport in partnership with Megawide in Philippines.
Groupe ADP develops and manages airports, including Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget.
According to the notice that was submitted to the CCI regarding the deal with Groupe ADP, there are no horizontal overlaps, vertical links or complementary businesses between the acquirer and the targets in India.
While the acquirer is Groupe ADP, the targets referred in the notice are GMR Infra Services Ltd and GAL.
“In the absence of any overlaps between the parties in India, the proposed combination does not raise any risk of adverse effect on competition in India, and is accordingly being submitted through the ‘Green Channel’ route…,” the notice said.
Source: Business-Standard