The Competition Commission of India (CCI) has approved Dalmia Bharat's proposal to acquire the debt-laden Jaiprakash Associates Ltd (JAL). For the uninitiated, Jaiprakash Associates is going through the insolvency resolution process. Under the provisions of the Insolvency and Bankruptcy Code (IBC), an approval from the competition watchdog is a key requirement for submission of a resolution plan to participate in the bidding process.
Besides Dalmia Bharat, several other players have shown interest in acquiring the debt-ridden JAL, which operates across cement, real estate, hospitality, and fertiliser plants.
Players, including billionaire Gautam Adani-led Adani Enterprises, Vedanta Group, Jindal Power, and PNC Infratech, have also approached the CCI to seek its nod for submitting their respective resolution plans to the lender's body, the Committee of Creditors (CoC).
A Supreme Court's directive mandates obtaining CCI approval before the committee of creditors can vote on any resolution plan that qualifies as a combination under the Competition Act.
"The proposed combination envisages 100 per cent acquisition of Jaiprakash Associates Ltd (JAL) by Dalmia Cement (Bharat) Ltd (acquirer) pursuant to a corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC)," the regulator said in a release.
Dalmia Cement (Bharat) Ltd is a wholly owned subsidiary of Dalmia Bharat Ltd (DBL), which is the flagship company of the Dalmia Bharat Group.
DBL is primarily engaged in the manufacture and sale of cement. On the other hand, Jaiprakash Associates operates in multiple sectors including cement, real estate, hospitality, and engineering, procurement and construction.
JAL is engaged in diverse business activities viz, real estate, cement, hospitality, engineering, procurement, and construction.
"Commission approves proposed acquisition of Jaiprakash Associates Ltd by Dalmia Cement (Bharat) Ltd," CCI said in a post on X.
A similar combination notice has also been filed with the CCI by the Adani Group as part of the same insolvency process.
JAL was admitted into the CIRP through the National Company Law Tribunal, Allahabad Bench, order dated June 3, 2024.
It was taken to insolvency proceedings after the conglomerate defaulted on the payment of loans.
With PTI inputs
