The Competition Commission of India (CCI) has approved Reliance Infrastructure’s proposed acquisition of controlling stake in Pipavav Defence and Offshore Engineering in a Rs 2,000-crore deal, it is learnt.
Giving its consent, the government body responsible for enforcing the Competition Act, 2002 throughout the country said that the proposed combination was not likely to have an appreciable adverse effect on competition in India.
While Pipavav Defence is mainly into manufacturing of commercial ships and repair of oil rigs, Reliance Defence Systems Pvt. Ltd, part of the Anil Ambani group company Reliance Infrastructure, is yet to start commercial operations.
Reliance Defence would purchase nearly 18 per cent stake from the promoter group led by Mr Nikhil Gandhi at Rs 63 per share, amounting to Rs 819 crore, and subsequently make an open offer for an additional 26 per cent at Rs 66 apiece, aggregating Rs 1,263.3 crore, according to reports.
This post was written by Atlantic Admin