CCI Approved Acquisition Of Certain Subsidiaries Of Mytrah Energy (India) Private Limited By JSW Neo Energy Limited

On 29 September, 2022 the CCI approved the 100% acquisition of certain subsidiaries of Mytrah Energy (India) Private Limited namely, Mytrah Vayu Urja Private Limited, Bindu Vayu Urja Private Limited, Mytrah Vayu (Pennar) Private Limited, Mytrah Vayu (Manjira) Private Limited, Mytrah Vayu (Krishna) Private Limited, Mytrah Vayu (Godavari) Private Limited, Mytrah Vayu (Som) Private Limited, Mytrah Vayu (Indravati) Private Limited, Mytrah Vayu (Tungabhadra) Private Limited, Mytrah Vayu (Sabarmati) Private Limited, Mytrah Akshaya Energy Private Limited, Mytrah Advaith Power Private Limited, Mytrah Adarsh Power Private Limited, Mytrah Abhinav Power Private Limited, Mytrah Agriya Power Private Limited, Mytrah Aakash Power Private Limited, Mytrah Aadhya Power Private Limited, and Nidhi Wind Farms Private Limited (collectively referred to as 'Targets'), by JSW Neo Energy Limited ('Acquirer') ('Proposed Combination'). The Targets and the Acquirer are collectively referred to as the 'Parties'.¹

The Acquirer is a wholly owned subsidiary of JSW Energy Limited ('JEL'), which is engaged in power generation (through hydropower, solar, and thermal energy), power transmission, power trading and power plant equipment manufacturing. The Targets are engaged in power generation through wind energy and solar energy in India.

The CCI observed that the Parties exhibit horizontal overlaps in the market of power generation at a broader level, in the market for power generation from renewable sources at a narrow level, and in the market of solar power generation at a further narrower level in terms of a specific source of power generation. The Acquirer is also proposed to participate in the market for wind power generation in the future. However, the CCI observed that, the acquisition is not likely to result in conferring the combined entity with any ability or incentive to foreclose competition in any market segment or sub-segment because the combined installed capacity of the Parties was insignificant in the market. It was estimated to be less than 5 percent in power generation, renewable power generation and solar power generation segment, and less than 10 percent in the wind power generation segment. Since the Targets did not bid for any PPAs in the last three years, the CCI held that the acquisition of Targets by the Acquirer and the consequent elimination of Targets as independent competitors is not likely to cause any significant changes in competition dynamics.

As regards the existing/potential vertical relationships, the CCI considered the specificities of the power generation sector and the Parties' presence in the power sector supply chain and held that the acquisition would not likely result in foreclosure of competition in any market segment or sub-segment.

Hence, the CCI approved the Proposed Combination under Section 31(1) of the Act.

Footnote

1 Combination Registration No. C-2022/08/961.

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