CCI okays AB Renewables' proposal to acquire Solenergi Power for Rs 17 200-cr

New Delhi, Oct 30 (PTI) The Competition Commission of India (CCI) on Friday cleared Aditya Birla Renewables' proposal to acquire Solenergi Power, which owns Sprng Energy group, for an enterprise value of Rs 17,200 crore (USD 1.8 billion).

     After the transaction closes, it will create one of India's largest integrated renewable energy platforms.

     "The proposed combination relates to the acquisition of 100 per cent of the issued share capital of the target (Solenergi Power Pvt Ltd) by the acquirer (Aditya Birla Renewables Ltd) from Shell Overseas Investment BV (Seller)," CCI said in a release.

     Aditya Birla Renewables Ltd (ABRen), a unit of Grasim Industries, is engaged in power generation through renewable energy resources (solar and wind), as well as captive engineering, procurement, and construction activities.

     Mauritius-registered Solenergi Power has no business other than that of a holding company. It is present in India through certain downstream holding entities and entities engaged in power generation through renewable energy resources (solar and wind).

     The anti-trust regulator said it has approved the proposed deal.

     "Commission approves acquisition of 100 per cent of the issued share capital of Solenergi Power Private Limited by Aditya Birla Renewables Limited," CCI said in a post on X.

     In July this year, Aditya Birla Renewables announced that it has agreed to acquire Sprng Energy from Shell Overseas Investment BV in a deal valued at about USD 1.8 billion.

     The transaction values Sprng Energy at an enterprise value of Rs 17,200 crore (USD 1.8 billion), the Aditya Birla Group firm said in a statement.

     The acquisition will add about 5 gigawatt-peak (GWp) of contracted renewable energy capacity, including around 3.3 GWp of operational assets and 1.7 GWp under construction, taking ABRen's combined portfolio to about 9.3 GWp.

     The acquisition will be funded through a mix of debt and equity from Grasim Industries and funds managed by Global Infrastructure Partners, part of BlackRock, it added.

     In a separate release on Friday, fair trade regulator CCI also granted its nod for the proposed merger of Sapphire Foods India Limited with and into Devyani International Ltd and related transactions.

     Devyani and Sapphire operate KFC and Pizza Hut franchise outlets across India. Devyani is also the exclusive franchisee of Costa Coffee, New York Fries, and Sanook Kitchen in the country. It also owns and operates homegrown brands.

     "Commission approves merger of Sapphire Foods India Limited with and into Devyani International Limited and related transactions," CCI said on X.

     Deals beyond a certain threshold require approval from the regulator, which keeps a watch on unfair business practices as well as promotes fair competition in the marketplace.

(This story has not been edited by THE WEEK and is auto-generated from PTI)