CCI approves purchase of Jaiprakash Associates by Adani Group

CCI approves purchase of Jaiprakash Associates by Adani Group

The Competition Commission of India (CCI) has approved the acquisition of Jaiprakash Associates by the Adani Group. The approval comes after a lengthy and complex process involving various bidders and legal challenges. The Adani Group's offer was considered one of the most attractive, with a cash payout of ₹3,500 crore and the retention of ₹890 crore within the company after its acquisition [1].

The acquisition process has been marked by several key events. Initially, Jaiprakash Associates received bids from multiple parties, including Adani Enterprises, Vedanta, Dalmia Bharat Cement, Jindal Power, and PNC Infratech. However, legal hurdles, particularly related to the JAL's Sports City project, complicated the process. Despite these challenges, the Adani Group's offer was seen as the most favorable by the lenders [2].

The CCI's approval is a significant milestone in the resolution of Jaiprakash Associates' insolvency. The company has been under the Corporate Insolvency Resolution Process (CIRP) since June 2024 and has faced numerous financial and operational challenges. The acquisition by the Adani Group is expected to provide the necessary capital and operational expertise to revive the company's businesses in cement, power, hotels, construction, and real estate [3].

The approval also comes as the Adani Group continues to expand its borrowing activities. Adani Airport Holdings and Adani Ports have recently raised $275 million through foreign currency loans, indicating the conglomerate's robust financial position and appetite for growth [4].

In conclusion, the CCI's approval of the Adani Group's acquisition of Jaiprakash Associates marks a crucial step in the company's insolvency resolution. The deal is expected to bring significant financial and operational benefits, paving the way for Jaiprakash Associates' recovery and growth.

References:
[1] https://www.business-standard.com/topic/jaiprakash-associates
[2] https://www.financialexpress.com/business/industry-adani-group-companies-raise-275-million-via-foreign-currency-loans-report-3953145/
[3] https://www.business-standard.com/topic/jaiprakash-associates