L&T-CPP investment deal: CCI gave clearance
Competition Commission of India (CCI) has cleared the proposed acquisition of Larsen & Toubro (L & T) Infrastructure Development Projects’ securities by foreign venture capital investor CPP Investment Board Singaporean Holdings 1. This is a very good news for L & T and there is a wave of cheer among the top brass of L & T. This deal is expected to be beneficial for both the companies.
According to the fair trade regulator CCI, the proposed deal “is not likely to have an appreciable adverse effect on competition in India”. Hence they were okay with giving a green signal to the deal. CCI always wants to safeguard the interests of the Indian players in this fiercely competitive market. Under the deal, the CPP Investment Board which is a part of the Canada Pension Plan Investment Board would subscribe to compulsorily convertible preference shares and nominal equity shares of Larsen & Toubro Infrastructure Development Projects Ltd (L&T IDPL).
The subscription would entitle CPP Investment Board to acquire a stake not exceeding 49 % in L&T IDPL. This will be done post the conversion of the securities. The Competition Commission of India (CCI) noted that L&T IDPL is engaged in undertaking infrastructure projects developed under the public-private partnership mode through special purpose vehicles. This was announced in an order dated August 21.
Source- The Economic Times
Canada Pension Plan Investment Board, CCI, Competition Commission of India, infrastructure development projects, Larsen & Toubro, Public-private partnership, special purpose vehicles
