CCI approves Shrem InvIT’s acquisition of equity in 10 road infra projects by Dilip Buildcon

The Competition Commission of India (CCI) has approved the acquisition of equity by Shrem InvIT in ten road infrastructure projects from Dilip Buildcon Limited and its associates. The approval was granted under Section 31(1) of the Competition Act, 2002, yesterday.

The CCI said in a statement that the proposed combination involves an acquisition of 100 per cent of the equity in the target special purpose vehicles (SPVs). The deal also includes the issuance of certain units of Shrem InvIT to Dilip Buildcon and its associates. 

Shrem InvIT, a trust registered with SEBI under InvIT Regulations 2014, was set up for the purpose of carrying on infrastructure investment trust activities. 

The target SPVs that Shrem InvIT has picked equities in are undertaking road projects in Karnataka, Jharkhand, Andhra Pradesh, Maharashtra, Odisha, Madhya Pradesh and Chhattisgarh. These SPVs were incorporated with the purpose of developing specific road projects. 

Dilip Buildcon is in the business of construction, operation and maintenance of roads and highways. It was established in 1987. The company obtains road projects through a government’s bidding process. It was awarded the National Highway Excellence Award in 2020 for highway maintenance. 

Separately, the CCI also approved British oil and gas major Shell's proposed acquisition of renewable energy firm Solenergi Power. The deal was announced in April this year. In a tweet on Monday, CCI said it has cleared the "acquisition of 100 per cent shareholding and sole control of Solenergi Power Pvt Ltd by Shell Overseas Investments BV."

Deals beyond a certain threshold have to be approved by CCI, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace.

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