CCI approves Adani Enterprises' plan to acquire Jaiprakash Associates

CCI approved Adani Enterprises' plan to acquire JAL under the insolvency process, even as rival bids from Dalmia, Vedanta, Jindal and PNC Infratech remain under review

The Competition Commission of India (CCI) on Tuesday approved the acquisition of Jaiprakash Associates Limited (JAL) by Adani Enterprises Limited and Adani Infrastructure and Developers Private Limited through the corporate insolvency resolution process.

 

In its order, the CCI said: “The acquirers are backed by promoters, management, and other Adani Group companies who have a strong record of accomplishment of acquisition and turnaround of distressed companies post-acquisitions.”

 

The order further noted that the Adani Group had experience in turning around distressed assets in general, as well as those in specialised business sectors.

 

This is the second proposal for acquiring JAL to be cleared by the CCI. Earlier this month, the regulator approved the proposal of Dalmia Cement (Bharat) Limited for JAL’s acquisition under the Insolvency and Bankruptcy Code (IBC) framework.

 

Meanwhile, Jindal Power Limited has also applied for approval of its plan to acquire JAL with the CCI. The antitrust regulator is reviewing the application of PNC Infratech as well.

 

The CCI order comes ahead of a crucial meeting of JAL’s Committee of Creditors (CoC), which will decide whether the resolution of the distressed company should take place in challenge mode.

 

JAL is engaged in diverse business activities including real estate, cement, hospitality, and engineering, procurement, and construction.

 

The company entered insolvency on 3 June 2024. Besides Adani and Dalmia groups, Vedanta Group, Jindal Steel & Power Limited (JSPL), and PNC Infratech have also submitted resolution plans for the conglomerate.

 

The five resolution applicants — Adani Group, Dalmia Group, Vedanta Group, Jindal Power (JPL), and PNC Infratech — submitted revised plans for the conglomerate after the CoC asked them to remove conditionalities.

 

The CoC has since raised further red flags in the plans and asked bidders to submit updated proposals within a week, according to people in the know.

 

Most bids remain contingent on the outcome of a key legal case surrounding Jaiprakash’s 1,000-hectare Sports City project in Greater Noida.

 

Creditors’ total admitted claims against JAL stand at over Rs 59,000 crore. In all offers submitted so far, banks are expected to take a haircut of up to 79 per cent of their claims.

 

Once proposed IBC amendments come into force, companies will be required to take the CCI’s approval before submitting their plan to the adjudicating authority, and not after the CoC’s decision.