Apr 29, 2023CCI Approves Acquisition of Shares of Lanco Anpara Power Limited by Megha Engineering and Infrastructures Limited
On February 9, 2023, CCI approved the acquisition of a 100% acquisition of shares of Lanco Anpara Power Limited (‘Target’) by Megha Engineering and Infrastructures Limited (‘Acquirer’) (‘Proposed Combination 1’).[1]
Proposed Combination 1
The Proposed Combination 1 was the acquisition of 100% equity shares and 100% preference shares of the Target by the Acquirer.
Parties to Proposed Combination 1
The Acquirer is a public limited company incorporated in India. It is engaged in engineering, procurement and construction projects in various sectors like power, irrigation, transportation etc. It is involved in the generation of power, and has the installed capacity to generate power both through thermal energy and solar energy. It also undertakes transmission of power through its subsidiary, Western UP Power Transmission Company Limited (‘WUPPTCL’).
The Target is a subsidiary of Ramanagaram Enterprises Private Limited and a second level step down subsidiary of Lanco Infratech Limited. It is engaged in thermal power generation by utilising coal as its source of energy.
Relevant Market and Overlaps
With respect to horizontal overlaps, the CCI identified the following markets in India:
i. Broad market as the market for power generation in India; and
ii. Narrow market as the market for power generation in India through non-renewable and further through thermal source.
With respect to vertical overlaps, the CCI identified the following markets in India:
i. The market for generation of power in India by the Target (‘Upstream market’);
ii. The market for power transmission by WUPPTCL (‘Downstream market’);
iii. The market for provision of EPC Solutions for power generation in India by the Acquirer (‘Upstream market’); and
iv. The market for power generation in India by the Target (‘Downstream market’).
Competitive Assessment
Noting the lack of market shares of the parties to the Proposed Combination 1 in the identified broader and narrower horizontal and vertical markets, the Commission approved the Proposed Combination 1 holding it is not likely to have any appreciable adverse effect on competition (‘AAEC’) in India.
[1] Combination Registration No. C-2022/11/982.