On April 1, 2020, CCI approved the acquisition of 50% of the shareholding in a joint venture entity (‘JV Entity’) by Total S.A^[1] to be incorporated by Adani Green Energy Limited (‘AGEL’). Prior to the acquisition by Total S.A., AGEL will transfer certain solar energy assets held by it (‘Target Companies’) to the JV Entity. The transaction documents executed between Total S.A. and AGEL also contemplated transfer of additional solar energy assets to the JV Entity, which Total S.A. undertook to notify to CCI separately.

The Target Companies are directly or indirectly held by AGEL and are engaged in solar power generation in India.

Total S.A. is the ultimate parent entity of the Total group, which is engaged in inter alia the renewable and power generation sectors across the world. Total S.A., through one of its group entities has shareholding in Total Eren Holdings which in turn has interest in EDEN Renewables India LLP, which is engaged in solar power generation in India, thereby creating a horizontal overlap between Total S.A. and the Target Companies.

CCI noted the insignificant combined market shares of the parties in the broader market for power generation, as well as the narrower segments for power generation through renewable energy and solar energy. Additionally, CCI also noted that due to the limited presence of Total group in power generation, there was an insignificant increment in Total’s market share as a result of the transaction (even after accounting for pipeline projects). Thus, CCI approved the transaction based on its assessment that it would not cause any competition concerns.

[1] Combination Registration No. C-2020/03/736.