The Competition Commission of India (CCI) has approved an arm of Tata Group, and its two overseas partners to acquire a majority stake in GMR Airports Limited (GAL), the ministry of corporate affairs said in a statement on Tuesday.
"CCI approves the acquisition of shareholding in GMR Airports Limited (GAL) by TRIL Urban Transport Private Limited (TUTPL), Valkyrie Investment Pte. Ltd. (Valkyrie) and Solis Capital (Singapore) Pte. Limited (Solis) under Section 31(1) of the Competition Act, 2002," the statement said.
"The proposed combination relates to the acquisition of up to 55.2% equity stake in GAL collectively by TUTPL, Valkyrie and Solis," it added.
TUTPL is a wholly-owned subsidiary of Tata Realty and Infrastructure Limited (TRIL). TRIL is an arm of Tata Sons, which is engaged in the development of urban transport and infrastructure facilities such as ropeways, metro rail transit system etc.
Meanwhile, Valkyrie is a special purpose vehicle (SPV) organized as a private limited company in Singapore and is an affiliate of GIC Private Limited.
Solis Capital is an investment arm of the Hong Kong-based SSG group.
"The Commission approved the Proposed Combination subject to carryout of certain modifications proposed by TUTPL under Regulation 19 (2) of the Competition Commission of India Regulations, 2011," the statement added.
Mint had on 27 March reported that Tata Group and two foreign entities have agreed to invest ₹8,000 crore in GMR Infrastructure Ltd’s airports business.
The deal will pump ₹1,000 crore into GMR Airports, and purchase ₹7,000 crore of the airport unit’s equity shares from the parent.
GMR currently operates Delhi international airport., and the Hyderabad International airport, in India.
Once the deal is completed, Tata Group will hold 20% in GAL, while GIC will get 15% and SSG will own 10% in the airport unit. The deal values GAL at ₹18,000 crore.