CCI, by its order dated February 10, 2016, has approved
acquisition of 49.86% stake in SGL by Gujarat State Petroleum
Corporation Limited ("GSPC"); Gujarat State Petronet
Limited ("GSPL"); and Bharat Petroleum Corporation
Limited ("BPCL"). The stake proposed to be acquired in
currently being held by India Infrastructure Development Fund
("IIDF"), India Infrastructure Fund ("IIF") and
IFCI Venture Capital Funds Limited ("IFCI") (collectively
called "Investors") in equal proportions.
GSPC is engaged in exploration and production, gas transmission,
city gas distribution and power generation, etc. GSPL is involved
in building the infrastructure for transmission of natural gas
across the state of Gujarat allowing last-mile linkage to the
end-user. BPCL is a public limited company primarily engaged in the
business of refining and marketing of oil and gas. SGL operates a
city gas distribution network in the districts of Gandhinagar,
Mehsana and Sabarkantha in Northern Gujarat.
The CCI noted that the proposed combination envisages exit of
Investors and keeping in view the nature of their existing
affirmative veto rights observed that the exit of Investors is not
likely to result in a change in competition dynamics in any market
in India and the proposed combination is thus not likely to result
in an appreciable adverse effect on competition in any of the
markets in India. Consequently, the proposed combination has been
(Source: CCI Order dated February 10, 2016. For full text
see CCI website)
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