The Competition Commission of India has approved the proposed acquisition of 34% equity shareholding of Ashoka Concessions (ACL) by Ashoka Buildcon (ABL) and certain convertible instruments of ACL by ABL and Viva Highways (Viva); and 26% shareholding of Jaora Nayagaon Toll Road Company (JN) by Viva

The proposed combination envisages the acquisition of 34% equity shareholding of ACL by ABL and certain convertible instruments of ACL by ABL and Viva, and 26% shareholding of JN by Viva.

ABL (including its affiliates) is primarily engaged in engineering, procurement and construction (EPC) in various sectors and operation and maintenance (O&M) of roads and highways. ABL operates its road assets through various models i.e., EPC, Build Operate and Transfer (BOT) and Hybrid Annuity Model (HAM) models.

ACL, the infrastructure arm of the Ashoka Group, is active in operation and maintenance of roads and highways in India through its various subsidiaries, which operate road assets. It was floated by ABL for bringing the various BOT based road and highway projects under one umbrella.

JN, a BOT concessionaire, has been granted concession by the Madhya Pradesh Road Development Corporation for reconstruction, strengthening, widening, and rehabilitation of 125 Km to 250 Km of State Highway (SH)-31 in the state of Madhya Pradesh.

Detailed order of the Commission will follow.

Competition approval for strategic acquisitions of equity and convertible instruments in road infrastructure projects enabling consolidation of concession interests. The Competition approval covers a proposed combination in which an infrastructure group entity will acquire a minority equity stake in its concessionaire and, together with a second purchaser, acquire certain convertible instruments in that concessionaire; separately, the second purchaser will acquire a minority stake in a BOT toll-road company. The acquirers operate in EPC and O&M of roads across EPC, BOT and Hybrid Annuity delivery models, while the targets operate BOT-based road assets and a state highway BOT concession. A detailed order will follow.