Adani Power's deal to buy Udupi thermal plant gets CCI nod

Fair trade watchdog CCI has approved Adani Power's Rs 6,000 crore deal to acquire the 1,200 MW Udupi thermal plant from Lanco Infratech, saying the transaction does not raise anti-competition concerns.
The deal, one of the biggest in the Indian power sector, was announced in August.
Clearing the transaction, Competition Commission of India said it is not "likely to have appreciable adverse effect on competition" in the country.
"... Post combination the combined market share of the acquirer, both in terms of installed capacity and electricity generation, would not be significant enough to raise any competition concern," CCI said in its order, dated October 24, and released today.

Besides, the regulator noted that there is no vertical relationship between Adani Power and UPCL as the latter does not use any transmission services provided by Adani Power.
Under the proposed transaction, Adani Power would acquire Udupi Power Corp Ltd (UPCL) from Lanco Infratech, Lanco Thermal Power Ltd, Portia Properties Pvt Ltd and certain individual shareholders.

UPCL operates the 1,200 MW power plant in Udupi, Karnataka.
"The proposed combination relates to the business of power generation in India. The power generation market in India is characterised by presence of a large number of players," the order said.
Making the announcement in August, Lanco Infratech had said the deal was "is valued at more than Rs 6,000 crore". It includes Rs 4,000 crore debt component.

"This transaction will support the company in reducing its debt and will enable Lanco to receive about Rs 2,000 crore as cash and additionally, Adani Power will take Udupi plant's long-time debt of around Rs. 4,000 crore," it had said.