CCI Approves Abu Dhabi Future Energy Stake Buy in Hero Future Energies

CCI has given its nod under the green channel route to Masdar for acquiring an equity stake in Hero Future Energies

The Competition Commission of India (CCI) has given its nod under the green channel route to Abu Dhabi Future Energy Company (Masdar) for acquiring an equity stake in Hero Future Energies Global Ltd.

Besides, the transaction involves the acquisition of non-voting compulsorily convertible preference shares in Hero Future Energies Private Ltd.

“The proposed combination in terms of…Combination Regulations (i.e. notice for approval of combinations under green channel) is deemed to be approved,” the CCI said in a statement. The Abu Dhabi Future Energy Company (Masdar) is an international renewable energy and sustainability company that provides solutions in energy, water, urban development and clean technologies, it added.

Hero Future Energies India is primarily engaged in the implementation of power projects and generation of power through renewable sources of energy, among other activities.

The transaction represents an attractive investment opportunity for the acquirer in the renewable energy sector in India, a combination notice filed with the CCI said.

This is second clearance given under the ‘green channel’ route by the fair trade regulator. Before this, the regulator had approved the acquisition of the Essel Mutual Fund by a Sachin Bansal-owned entity in October.

The green channel concept — recommended by the high-level panel that reviewed competition law in August — allows for an automatic system for speedy approval of certain categories of merger and acquisitions.

Under the framework, green channel approvals can be availed in combinations where there are no horizontal overlaps, no existing or potential vertical relationships and no complementary business activities between the combining parties, or their respective group entities, or involving any entity in which any of the combinings partied hold shares or have control.

Earlier in January, Masdar had thrown its hat into the ring for a minority stake in Hero Future Energies. It had entered into exclusive talks to acquire a 30-35 percent stake in the Munjal family’s Hero Group.