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The Competition Commission of India (CCI) has approved the merger of Sasan Power Infrastructure with its parent

firm Reliance Power, which is promoted by Mr Anil Ambani. The competition watchdog, 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. The 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 in 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. Reliance Power is engaged in the development, construction and operation of power generation projects, and development of coal mines associated with such projects. The CCI added that in its filing that Reliance Power has stated that Sasan Power (RPLs 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 Competition Commission of India 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 CCIs nod. Keywords: Sasan Power Infrastructure, Reliance Power, merger, Competition Commission of India

The HinduAnil

Ambani. File photo

TOPICS company information merger, acquisition and takeover

The Reliance Anil Dhirubhai Ambani Group (Reliance ADAG) will merge its group company Reliance Natural Resources Limited (RNRL) with another group company Reliance Power Limited (Reliance Power) in a more than Rs.50,000-crore, all-stock deal. The Boards of Directors of both companies approved an exchange ratio of 1 equity share of Reliance Power for every 4 of RNRL. The ratio is based on the valuation made by audit firm KPMG. The Board of Directors of Reliance Power Limited and Reliance Natural Resources Limited approved a scheme for amalgamation of the two companies in an over Rs.50,000-crore ($11 billion) all-stock deal, subject to necessary approvals, said a release from the Reliance ADAG here. The Reliance ADAG has a net worth of more than Rs.64,000 crore, cash flows of Rs.13,000 crore and a net profit of Rs.8,400 crore. Reliance Power and its shareholders, including Reliance Infrastructure Ltd., will derive substantial benefits from the proposed amalgamation, the release said. The Reliance ADAG said the merger would accelerate the implementation of Reliance Power's plans for creating more than 8,000 MW of gas-based power generation capacity. The gas would be supplied under the RNRL's Gas Supply Master Agreements with Reliance Industries Ltd (RIL). Reliance Power would also benefit from the prospects for gas from the RNRL's Coal Bed Methane (CBM) blocks, comprising 45 per cent interest in four blocks with an acreage of 3,251 sq. km. and an estimated resources of 193 billion cubic metres; and a 10 per cent share in an oil and gas block in Mizoram, with an acreage of 3,619 sq. km. and a reserve potential of up to 28 billion cubic metres. It also envisages reliability and cost efficiency for fuel supplies through the RNRL's coal supply logistics and shipping business; contribution from the RNRL's net worth of Rs.1,900 crore, leading to an increase in Reliance Power's net worth to more than Rs.16,000 crore; and a significant further enhancement of the Reliance Power's overall growth prospects. The Reliance ADAG also believes that the RNRL's shareholders will benefit from the amalgamation by taking part in future growth prospects of Reliance Power's diversified generation portfolio of 37,000 MW, and its substantial coal reserves in India and abroad. The scheme of amalgamation is subject to approval of the shareholders of the Reliance Power and the RNRL, the stock exchanges, the High Court of Judicature, Bombay, and all other requisite permissions. Keywords: Reliance group, merger, RNRL, RPower

PTI New Delhi: Anil Ambani Group firm Reliance Power Ltd today said it has acquired three coal mines in Indonesia with total reserves of two billion metric tonne.

The acquisition was done by its wholly-owned subsidiary Reliance Coal Resources Pvt Ltd (RCRPL), which plans to invest Rs 2,400 crore in mine and related transportation infrastructure to take the capacity of these mines to over 25 million metric tonne per annum. Reliance Coal Resources has acquired 100 per cent economic interest in three coal concessions in Indonesia, Reliance Power said in a filing to the Bombay Stock Exchange. RCRPL has acquired Srivijaya Bintangtiga Energy, Bryayan Bintangtiga Energy and Sugico Pendragon Energy in the South Sumatra area of Indonesia spread over an area of 40,000 hectares. The coal from the mines would be supplied to Reliance Powers 4,000-MW Ultra Mega Power Project at Krishnapatnam in Andhra Pradesh and also to the Shahapur power project in Maharashtra. As per the agreement, payment for the acquisition is linked to the actual production of coal.