Qatar Holding gets CCI nod to buy 25% stake in Adani Electricity Mumbai

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The Competition Commission of India has approved under Green Channel route acquisition of over 25% stake in Adani Electricity Mumbai Ltd (AEML) by Qatar Holding.

Under the transaction, Qatar Holding—a subsidiary of state-owned Qatar Investment Authority—would also extend a loan to AEML.

The total QIA investment in AEML will be approximately Rs3200 crore (equivalent to approximately $450 million).

As part of the transaction, Adani Transmission Ltd (the parent of AEML) and QIA have agreed definitive plans to ensure that over 30% of the electricity supplied by AEML is sourced from solar and wind power plants by the year 2023. In addition, ATL and QIA have agreed on a number of other green initiatives to combat climate change and facilitate the transition to a sustainable, low carbon economy.

The transaction is expected to complete in early 2020 subject to receipt of regulatory approvals and satisfaction of customary conditions precedent.

Qatar Holding is registered as a foreign portfolio investor with the Securities and Exchange Board of India.

AEML is an integrated power generation, transmission and retail electricity distribution business that serves over 3 million consumers in Mumbai. In Mumbai it commands a market share of around 87% by license area, 67% by consumers served and 55% by electricity supplied.

The green channel route for mergers & acquisitions allows fast and automatic approvals for clean energy projects.

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