Adani Group Applies for CCI Approval to Acquire Jaiprakash Associates

The Adani Group has filed a notice with the Competition Commission of India (CCI) seeking approval to acquire up to 100% stake in Jaiprakash Associates Ltd (JAL), which is currently undergoing insolvency proceedings. The proposal comes through Adani Enterprises Ltd and Adani Infrastructure and Developers Pvt Ltd.

Acquisition Linked to Insolvency Proceedings

JAL was admitted into the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal, Allahabad Bench, on June 3, 2024, following loan defaults. Reportedly, total claims from creditors stand at ₹57,185 crore. The National Asset Reconstruction Company Ltd (NARCL) is the largest claimant after acquiring the loans from a consortium led by SBI.

Details of the Proposed Combination

According to the notice filed with CCI, the acquisition will involve either Adani Enterprises, Adani Infrastructure and Developers, or any entity within the Adani Group. The companies involved stated that the transaction does not raise competition concerns and that market delineations may be kept open.

Vertical Linkages Identified

The Adani Group highlighted possible vertical linkages between JAL’s assets and existing operations. These include products and services like limestone, fly ash, clinker, ready-mix concrete, coal management, and construction activities, which are tied to the cement manufacturing sector.

Other Bidders for JAL

Besides Adani, 4 other entities, Vedanta Group, Dalmia Bharat Cement, Jindal Power, and PNC Infratech have submitted resolution plans to acquire JAL. Dalmia Cement also sought CCI approval last month for a full acquisition, including JAL’s assets and stakes in subsidiaries and joint ventures.

Assets Under JAL

JAL has real estate projects including Jaypee Greens in Greater Noida, Wishtown in Noida, and the Jaypee International Sports City. It also owns 5 hotels across Delhi-NCR, Mussoorie, and Agra. Its 4 cement plants in Uttar Pradesh and Madhya Pradesh are currently non-operational.

Read More: Adani Group Set for Major Expansion with $100 Billion Capex!

Conclusion

The proposal from Adani now awaits regulatory clearance. The outcome will determine the future course for JAL’s assets and its ongoing insolvency resolution process.

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