New Delhi: Anti-trust watchdog CCI has approved Reliance Infrastructure's proposed acquisition of controlling stake in Pipavav Defence and Offshore Engineering in a Rs 2,000-crore deal.
Giving its nod, the regulator said it's of the opinion that the "proposed combination is not likely to have an appreciable adverse effect on competition in India".
Pipavav Defence is mainly into manufacturing of commercial ships and repair of oil rigs while Reliance Defence Systems Pvt Ltd -- part of Anil Ambani group firm Reliance Infrastructure (Rel Infra) -- is yet to start its commercial operations.
The Competition Commission of India (CCI) said there is no horizontal overlap or vertical relationship between the products/services of the two entities.
"Further, none of the group companies of Reliance Infrastructure are active in the sectors wherein Pipavav is active," CCI said in its order dated April 20 and made public today.
Reliance Defence would purchase nearly 18 per cent stake from promoter group led by Nikhil Gandhi at Rs 63 per share, amounting to Rs 819 crore, and subsequently make an open offer for an additional 26 per cent at Rs 66 apiece, aggregating Rs 1,263.3 crore.
In case the open offer fails, Reliance Infra would acquire additional shares from promoters to ensure its shareholding is not less than 25.10 per cent.
For the transaction, the parties concerned had entered into a purchase agreement in March.
