Fair trade regulator CCI has approved a multi-layered deal under which Koneru Holdings Ltd would acquire engineering, procurement and construction solution businesses for power transmission and telecom towers from various domestic players.
Mauritius-based KHL is an investment holding company and has no presence in India. It is owned by a non-resident Indian Srinivas Koneru.
KHL has proposed to acquire Saucon Holdings Ltd (SHL), PVK Engineers, Best & Crompton Engineering Projects, Aster and Ideamax Consultancy Services. Besides, it would buy certain identified undertakings of Agrawal Steel Structures (India), Gem Cables and Conductors, Vijeta Transformers and Sourya Insulators.
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Post these transactions, PIPL Holdings Pte Ltd would purchase Saucon Holdings from KHL. Besides, Puissant Holdings Pte Ltd would subscribe to non-convertible debentures in PVK Engineers.
PIPL and Puissant are wholly-owned subsidiaries of KHL.
Giving its green light, the anti-trust regulator in its order dated September 8 said the deal is not likely to have an appreciable adverse effect on competition in India.
"Post combination, KHL would become a vertically integrated player in the business of EPC Solutions for T&D and telecom towers. However, based on the market share of the acquired companies, it appears that post combination, KHL is not likely to be a significant player in the said business," Competition Commission of India (CCI) said.
"... As submitted by the acquirer (KHL), there are other vertically integrated players such as KEC International Ltd, Kalpatru Power Transmission Ltd, Larsen & Tubro Ltd, Tata Projects and Jyothi Structures Ltd etc which would provide competitive constraint to KHL," it added.
