The Competition Commission of India (CCI) approves acquisition by Shrem InvIT of equity in ten road infrastructure projects (Target SPVs) from Dilip Buildcon Limited (DBL) and its associates under Section 31(1) of the Competition Act, 2002, yesterday.

The Proposed Combination involves an acquisition of 100% of the equity in the Target SPVs by the Acquirer. It also entails issue of certain of units of Shrem InvIT to DBL and its associates as consideration for the acquisition. 

Shrem InvIT is a trust registered under the Indian Trusts Act, 1882 and with SEBI under InvIT Regulations 2014. It has been set-up for the purpose of carrying on the activity of an infrastructure investment trust.

The Target SPVs are undertaking the road projects in the state of Karnataka, Jharkhand, Andhra Pradesh, Maharashtra, Odisha, Madhya Pradesh and Chhattisgarh. They have been incorporated for the purpose of developing specific road projects.

DBL is engaged in the business of construction, operation and maintenance of roads and highways. DBL as an EPC contractor obtains road projects through a government’s competitive bidding process.

Detailed order of the CCI will follow.

Merger control approval: acquisition of road-project SPVs by an InvIT approved, units issued as consideration. The CCI approved an acquisition by Shrem InvIT of 100% equity in ten Target SPVs holding road infrastructure projects under Section 31(1) of the Competition Act, 2002, with consideration to include issuance of units of Shrem InvIT to Dilip Buildcon Limited and its associates; Shrem InvIT is a registered InvIT and the Target SPVs were incorporated to develop specified road projects.