The Adani Group, led by Gautam Adani, has made an official move to the Competition Commission of India (CCI) to get the green signal to acquire Jaiprakash Associates Ltd (JAL), a debt-ridden infrastructure conglomerate that is already in a corporate insolvency resolution process (CIRP). This action comes after the group is said to have gone in with an unconditional offer to acquire JAL, which has vital diversity of stake with engineering, cement, power, real estate, and hospitality, among others.
A notice submitted to the CCI says that the transaction amounts to the sale of up to 100 percent of the shareholding of JAL to Adani Enterprises Ltd (AEL) and Adani Infrastructure and Developers Pvt Ltd, or any other group company of the Adani Group. AEL, the lead company of the Gujarat-based conglomerate, pointed out in its filing that the deal will cause no anti-competitive concerns in any of the potential applicable markets.
Another point noted in the notice was the possibility of vertical interconnections between diverse products and services, including limestone, fly ash, clinker, coal management services, ready-mix concrete, and construction activities as the main inputs in the cement manufacturing business. Nevertheless, it stated that such interconnections would not negatively impact market competition.
Jaiprakash Associates is an Indian company that entered into an insolvency process before the National Company Law Tribunal (NCLT) Allahabad Bench on June 3, 2024, with its creditors estimated at 57,185 crore rupees. The federally organized joint venture company National Asset Reconstruction Company Ltd (NARCL) is in charge of the claims as it purchased the stressed assets of JAL via a group of lenders headed by the State Bank of India (SBI).
Other bidders working against Adani Group are Dalmia Cement (Bharat) Ltd., Vedanta Group, Jindal Power, and PNC Infratech, who have already submitted their resolution plans. JAL’s most prominent projects are Jaypee Greens in Greater Noida, Wishtown in Noida, and Jaypee International Sports City in the vicinity of the Jewar International Airport.
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