Competition Commission has cleared the proposed acquisition of Larsen & Toubro Infrastructure Development Projects' securities by foreign venture capital investor CPP Investment Board Singaporean Holdings 1.
According to the fair trade regulator, the proposed deal "is not likely to have an appreciable adverse effect on competition in India".
Under the deal, CPP Investment Board, part of Canada Pension Plan Investment Board, would subscribe to compulsorily convertible preference shares and nominal equity shares of Larsen & Toubro Infrastructure Development Projects Ltd (L&T IDPL).
The subscription would entitle CPP Investment Board to acquire a stake not exceeding 49 per cent in L&T IDPL, post conversion of the securities.
In an order dated August 21, the Competition Commission of India (CCI) noted that L&T IDPL is engaged in undertaking infrastructure projects developed under the public-private partnership mode through special purpose vehicles.
CPP Investment Board, on its part, is into the business of making investments in various companies.
Noting that CPP Investment Board has some minor stake in a few infrastructure development companies as a part of its investments, the commission said: "The horizontal overlaps and vertical relationships in the operations of the parties are too insignificant in terms of raising any competition concern in India".
The deal was entered on June 21, 2014, following which CPP Investment Board on July 18, this year approached CCI for approval.
CPP Investment Board is registered as a foreign venture capital investor with the Securities and Exchange Board of India.
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