On November 28, CCI approved the acquisition of 37.40% of the paid-up share capital and joint control of Adani Gas Limited (‘Target’) by Total Holdings (‘Total’). [1]

CCI noted that Total and the Target were present in different segments of the overall supply chain of the natural gas sector. CCI further observed that the natural gas sector was vertically linked between various entities and involved various supply arrangements before reaching the final end consumer. Accordingly, CCI identified two markets, i.e., (i) the wholesale supply of natural gas in India (‘Upstream Market’); and (ii) downstream retail supply of natural gas in India (‘Downstream Market’). In the Upstream Market, CCI noted that the combined market share of Total and the Target was too insignificant to raise any competition concerns. CCI further noted that any vertical linkage between the Target (through its presence in the Downstream Market) and Total (through its presence in the Upstream Market) would not raise any competition concerns on account of competitive constraints offered by various players in each of the markets. Accordingly, CCI approved this acquisition.

[1]  Combination Registration No. C-2019/10/694.