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CCI gives a nod to GMR Group-Groupe ADP deal

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New Delhi: The CCI (Competition Commission of India) has given its approval to the proposed GMR Group-Groupe ADP deal on Friday. GMR Group is looking to divest 49 percent stake in the conglomerate to France’s ADP. The CCI clearance is through the green channel, which allows for an automatic system for speedy approval of combinations, subject to certain conditions.

GMR Group-Groupe ADP deal valued at Rs 10,780 cr

On February 20, GMR Group said that France’s Groupe ADP would pick up 49 percent stake in its airport business in a deal valued at Rs 10,780 crore. The deal is expected to help GMR Group pare its debt burden of Rs 25,660 crore.

The CCI said in a tweet on Friday that it has received a “green channel combination filing from Aeroports de Paris SA for acquisition of 49 per cent stake in GMR Airports Ltd and 100 per cent stake in GMR Infra Services Ltd.”

The backdrop

France’s Groupe ADP would buy 100 percent stake in GMR Infra Services Ltd and then 49 per cent shareholding in GMR Airports Ltd (GAL), as per a notice submitted to the CCI. GMR Infra Services is an operating and holding company whose primary business is to hold shares in GAL, according to the notice.

Groupe ADP will pick up 49 percent stake in GAL for an equity consideration of Rs 10,780 crore under a share purchase agreement. Out of the total amount, Rs 9,780 crore would be used for the secondary sale of shares by GMR group and Rs 1,000 crore would be equity infusion in GAL, GMR Infrastructure said in a statement on February 20.

“As part of the terms of transaction, GMR will retain management control over the Airports Business with Groupe ADP having the customary rights and board representation at GAL & its key subsidiaries,” GMR had said.

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