Adani Group Seeks Competition Commission's Nod To Acquire Jaiprakash Associates

Billionaire Gautam Adani-promoted Adani group on Tuesday sought approval from the Competition Commission of India (CCI) to acquire Jaiprakash Associates Ltd.

The development came after the Adani group reportedly made an unconditional bid for debt-ridden Jaiprakash Associates Ltd (JAL), which is undergoing a corporate insolvency resolution process (CIRP).

"The proposed combination relates to the acquisition of up to 100 per cent of the shareholding of the target (Jaiprakash Associates Ltd) by the acquirers (Adani Enterprises Ltd and Adani Infrastructure and Developers Pvt Ltd) or any other entity forming part of the Adani Group," according to a notice filed with the CCI.

Adani Enterprises Ltd (AEL) is the flagship company of the Gujarat-based Adani Group. JAL is an infrastructure conglomerate with interests in engineering and construction, cement, power, real estate, and hospitality.

In a notice to CCI, AEL, Adani Infrastructure and Developers, and JAL have said the "proposed combination does not raise competition concerns in any plausible relevant market and therefore, the relevant market delineations may be left open.

They have also identified certain potential vertical linkages regarding products/services such as limestone, fly ash, clinker, coal management services, ready mix concrete, and provision of construction activities, which are linked to the market for the manufacture of cement.

"These vertical linkages do not give rise to any competition concerns," the notice stated.

Last month, Dalmia Cement (Bharat) Ltd also submitted a notice and sought clearance from the fair trade regulator CCI to acquire a 100 per cent stake in JAL, including its assets and proportionate shareholding in its subsidiaries, associate companies, and joint ventures.

Earlier, lenders of JAL have turned down Jaypee Infratech's request to accept its resolution plan to acquire the bankrupt diversified company.

Five companies -- Adani Enterprises, Vedanta Group, Dalmia Bharat Cement, Jindal Power, and PNC Infratech -- have submitted their resolution plans to acquire JAL.

JAL was admitted into the CIRP through the National Company Law Tribunal, Allahabad Bench, order dated June 3, 2024.

JAL was taken to insolvency proceedings after the conglomerate defaulted on the payment of loans.

Creditors are claiming a staggering Rs 57,185 crore.

The National Asset Reconstruction Company Ltd (NARCL) leads the list of claimants after acquiring the stressed JAL loans from a consortium of lenders headed by the State Bank of India (SBI).

JAL has major real estate projects like Jaypee Greens in Greater Noida, a part of Jaypee Greens Wishtown in Noida (both on the outskirts of the national capital), and the Jaypee International Sports City, strategically located near the upcoming Jewar International Airport.

It also has three commercial/industrial office spaces in Delhi-NCR, while its hotel division has five properties in Delhi-NCR, Mussoorie, and Agra.

JAL has four cement plants in Madhya Pradesh and Uttar Pradesh, and a few leased limestone mines in Madhya Pradesh. The cement plants, however, are non-operational.

It also has investments in subsidiaries, including Jaiprakash Power Ventures Ltd, Yamuna Expressway Tolling Ltd, Jaypee Infrastructure Development Ltd, and several other companies.

Jaypee Group's Jaypee Infratech has already been acquired by Mumbai-based Suraksha Group through an insolvency process.

Suraksha Group has to complete various stalled projects comprising around 20,000 apartments in Noida and Greater Noida.

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