The Competition Commission of India (CCI) on Tuesday approved the acquisition of 89.6 per cent stake in Gangavaram Port Ltd (GPL) by Adani Ports and Special Economic Zone Ltd.
On March 23, Adani Ports had said it would acquire 58.1 per cent stake held by DVS Raju and family in GPL for Rs 3,604 crore. Earlier in the month, the company had announced acquisition of 31.5 per cent stake held by Windy Lakeside Investment Limited, an affiliate of Warburg Pincus, in GPL for Rs 1,954 crore. Together, both the transactions would take Adani Ports' stake in GPL to 89.6 per cent.
The transactions were subject to regulatory approvals, including from CCI.
GPL, located in the northern part of Andhra Pradesh next to Vizag Port, is the second largest non-major port in Andhra Pradesh with a 64 MMT capacity established under concession from the government of Andhra Pradesh that extends till 2059.
Adani Ports, a part of the Adani Group, is the largest commercial ports operator in India, accounting for nearly one-fourth of the cargo movement in the country. It has presence across 12 domestic ports in seven maritime states of Gujarat, Maharashtra, Goa, Kerala, Andhra Pradesh, Tamil Nadu and Odisha.
On April 5, Adani Ports also announced acquisition of the remaining 25 per cent stake in Krishnapatnam Port Ltd from Vishwasamudra Holdings for a cash consideration of Rs 2,800 crore. The Adani Group company already held 75 per cent stake in the port located in Nellore district of Andhra Pradesh.