Regulator says the deal is unlikely to have any adverse impact on competition in the natural gas distribution market
Fair trade regulator CCI today said it has approved sale of 65.12 per cent stake in Gujarat Gas Company by GSPC Distribution Networks, as the deal is unlikely to have any adverse impact on competition in the natural gas distribution market.
GSPC Distribution Networks is a wholly-owned subsidiary of GSPC Gas Company (GGCL), jointly promoted by Gujarat State Petroleum Corp (GSPC) and Gujarat State Petronet Ltd (GSPL).
In an order released today, Competition Commission of India (CCI) said that it has approved the proposed sale of stake in BG Group firm Gujarat Gas, as it is not likely to have an appreciable adverse impact on competition scenario.
In October, 2011, BG Group had said it has reached an agreement to sell its majority stake in GGCL to GSPC Distribution Networks Ltd (GDNL) for over Rs 2,460 crore.
CCI observed that "both GSPC Gas and GGCL, which are engaged in the distribution of natural gas in the state of Gujarat, operate in different geographical areas".
"In view of the forgoing, the proposed combination is not likely to raise any adverse effect on competition in the market for the distribution of natural gas in the state of Gujarat," it added.
GDNL's holding company, GSPC Gas, is engaged in the business of distribution of natural gas in ten districts of Gujarat including Rajkot and Gandhinagar. The entities has approached the CCI for approval on November 1, 2012.
After they together paid Rs 12 lakh to settle charges related to alleged delay in amending insider trading norms