On September 20, 2021, CCI approved the acquisition of approximately 10.4% shareholding in Gangavaram Port Limited (‘GPL’) by Adani Ports and Special Economic Zones Limited (‘APSEZL’) from the Government of Andhra Pradesh.^[1] CCI had through an earlier order dated April 12, 2021 approved the acquisition of 89.6% shareholding by APSEZL in GPL.^[2] By way of the present transaction, APSEZL proposes to acquire the remaining 10.4% of the shareholding in GPL, thereby resulting in APSEZL holding 100% shareholding of GPL.

APSEZL is a private multi-port operator which provides integrated port infrastructure services. APSEZL provides the following services through the ports operated by it: (i) full marine services including pilotage, towage of vessels and berthing and de-berthing; (ii) cargo handling services, loading and unloading of cargo from vessels, movement of cargo to and from port stack yard to both (and vice versa), storage for cargo, loading and unloading of cargo onto trucks or railways for transportation; and (iii) value added services such as bagging and packaging. APSEZL also manages a logistics chain through its subsidiary viz., Adani Logistics Limited (‘ALL’), which is an asset and service based end-to-end logistics service provider across container, bulk, breakbulk and liquid industries. APSEZL also provides dredging and reclamation solutions, primarily for port and harbor construction and also provide a large fleet of support vessels, and equipment such as multi-utility crafts, survey vessels, floating cranes etc.

GPL owns, develops and operates a deep-water port at Gangavaram, Andhra Pradesh, pursuant to a concession agreement on build-own-operate-transfer basis with the Government of Andhra Pradesh. GPL provides cargo handling and marine services, which include pilotage, berth hire, wharfage, stevedoring and railway rake loading.

The proposed transaction would result in a transfer from joint control to sole control of APSEZL over GPL. CCI observed that the facts and circumstances of the notification were largely similar to the factors that were already assessed as part of the earlier order passed on April 12, 2021. Given this, CCI decided to approve the proposed transaction.

[1] Combination Registration No. C-2021/09/867.

[2] Combination Registration No. C-2021/03/819.