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New Delhi: The Competition Commission of India (CCI) has approved billionaire Gautam Adani-controlled Adani Ports and Special Economic Zones Ltd's acquisition of 89.6% stake in Gangavaram Port Ltd.

Adani Ports and SEZ had earlier announced the acquisition of 58.1% stake in the port located in the northern part of Andhra Pradesh, next to Vizag Port, from D.V.S. Raju and family for 3,604 crore, winning majority control of the private port. Adani Ports had also announced the acquisition of Warburg Pincus’s 31.5% stake in Gangavaram.

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“The Competition Commission of India (CCI) approves acquisition of 89.6% of equity shareholding of Gangavaram Port Limited (“GPL") by Adani Ports and Special Economic Zones Limited (“APSEZ") under Section 31(1) of the Competition Act, 2002, on 13th April 2021," the corporate affairs ministry said in a statement on Tuesday.

Gangavaram Port is the second-largest non-major port in Andhra Pradesh with a 64 MMT capacity established under a concession from the stagovernment that extends till 2059.

“The proposed combination relates to the acquisition of 89.6% of the shareholding in GPL (i.e., the entity operating Gangavaram port) by APSEZ," the statement said.

It is an all-weather, deep water, multipurpose port capable of handling fully laden super cape size vessels of up to 200,000 DWT. Currently, GPL operates nine berths, has freehold land of 1,800 acres and a master plan capacity for 250 MMTPA with 31 berths.

“APSEZ is an integrated port infrastructure services provider currently present across 11 domestic ports in six maritime states of Gujarat, Goa, Kerala, Andhra Pradesh, Tamil Nadu and Odisha," the statement added.

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