Combination approval in power generation acquisition where small market presence raised no appreciable adverse effect on competition.

The proposed combination involving acquisition of target projects through newly incorporated special purpose vehicles was assessed under the statutory combination framework, including notice and substantive appraisal factors. The acquirers had only a small presence in power generation in India, and the transaction was not found likely to materially alter competition in the relevant market. On the information furnished and the factors relevant under the Competition Act, the Commission found no likelihood of an appreciable adverse effect on competition in India and approved the combination.

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Issues: Whether the proposed combination, involving acquisition of the target projects through newly incorporated special purpose vehicles, was likely to cause an appreciable adverse effect on competition in India and was fit for approval under the competition law.

Analysis: The combination was assessed under the statutory framework governing combinations, including the notice requirement and the substantive appraisal factors. The Acquirers had only a small presence in power generation in India, and the acquisition of the target special purpose vehicles was not found likely to materially alter competition in the relevant market. On the information furnished and the factors relevant under the Act, the Commission found no likelihood of an appreciable adverse effect on competition in India.

Conclusion: The proposed combination was approved under Section 31(1) of the Competition Act, 2002.

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