Competition watchdog CCI has approved the merger of Sasan Power Infrastructure with its parent firm Reliance Power, which is promoted by billionaire Anil Ambani.
The Competition Commission of India (CCI), in an order, said, "Based on the facts on record and the details provided in the notice filed under sub-section (2) of Section 6, the proposed combination is not likely to give rise to any adverse competition concern ... the Commission hereby approves the proposed combination."
CCI further noted that Sasan Power Infrastructure (SPIL) and Reliance Power (RPL) are not engaged in production, supply, distribution, storage, sale or trade of identical or similar goods or provision of services.
"The activities of SPIL and RPL are also not related at different stages of levels of production chain different markets," it said, adding, "Further, the control over the activities carried on by SPIL and RPL before and after the proposed combination remains with the management of RPL".
RPL is engaged in development, construction and operation of power generation projects, and development of coal mines associated with such projects.
CCI added that in its filing, RPL has stated that SPIL (RPL's wholly-owned subsidiary) is currently not carrying on any business activities and is holding investments in the group companies.
It is to be noted that SPIL is not implementing the Sasan ultra-mega power project.
The CCI is empowered by an Act of Parliament to scan high voltage merger and acquisition deals.
Under the Competition Act, 2002, companies with a turnover of more than Rs 1,500 crore will have to approach the CCI for approval before merging with another firm. Also, companies with combined assets of Rs 1,000 crore or more, or a combined turnover of Rs 3,000 crore or more, would require the CCI's nod.