Shares of Adani Power were gaining on Wednesday after the firm’s acquisition of an insolvent peer was approved by the country’s competition watchdog.
What Happened: The Competition Commission of India (CCI) has given its approval to Adani Power’s proposed acquisition of Lanco Amarkantak Power, clearing the way for the acquisition to proceed.
Adani Power intends to acquire Lanco Amarkantak Power as part of the corporate insolvency resolution process (CIRP) initiated under the Insolvency and Bankruptcy Code, 2016 (IBC). Lanco Amarkantak Power, which is insolvent, is primarily involved in thermal power generation.
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On March 5, Adani Power announced that it had received approval from creditors for the resolution plan to acquire insolvent Lanco Amarkantak Power. The CCI stated that the proposed transaction would not have any appreciable adverse effect on competition in any plausible relevant market in India.
Deals exceeding a certain threshold require approval from regulators like CCI to ensure fair competition in the marketplace and prevent unfair business practices.
Price Action: Adani Power’s share price was up 2.2% at ₹533.50 in early trade on Wednesday.
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