GSPC Distribution Networks (GDNL) is allowed to acquire 65.12 per cent stake in Gujarat Gas Company by the Competition Commission of India (CCI).
The commission approved the acquisition because it feels that the deal may not have any adverse impact on competition in the natural gas distribution market.
GDNL would buy the stake from BG Group, which reached an agreement to sell its majority stake in GGCL for over Rs 2,460 crore in October, 2011.
GDNL is a wholly-owned subsidiary of GSPC Gas Company (GGCL), jointly promoted by Gujarat State Petroleum Corp (GSPC) and Gujarat State Petronet (GSPL).
The CCI observed that “both GSPC Gas and GGCL, which are engaged in the distribution of natural gas in the state of Gujarat, operate in different geographical areas.
In an order, the commission said “In view of the forgoing, the proposed combination is not likely to raise any adverse effect on competition in the market for the distribution of natural gas in the state of Gujarat”.
GDNLÂ’s holding company, GSPC Gas, is engaged in the business of distribution of natural gas in ten districts of Gujarat including Rajkot and Gandhinagar. The entities have approached the CCI for approval on November 1, 2012.
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