Competition Commission of India (CCI): In a press release issued on 29-11-2023, the CCI notified its approval for the acquisition of shareholding in Delanord Investments by Abu Dhabi Ports Company.
Abu Dhabi Ports Company (Acquirer) is a trade, logistics and transport enabler which is listed on the Abu Dhabi Securities Exchange. Globally, the company directly or indirectly, is engaged in the operation of ports and terminals, provision of short-sea vessel operation services, provision of non-vessel operating common carrier (NVOCC) services, and provision of freight forwarding services.
Delanord (Target) is a provider of short-sea vessel operation services in the Middle East, Indian subcontinent (ISC Region), and Southeast Asia; and globally directly or indirectly, engages in the provision of short-sea vessel operation services, NVOCC services, and in-land transportation services.
The Commission under Regn. 13(1A) of Competition Commission of India (Procedure in Regard to the Transaction of Business Relating to Combinations) Regulations, 2011 (as amended) had notified the important details of the proposed acquisition.
The Commission had noted that the Proposed Combination is an attractive opportunity for the Abu Dhabi Ports Company to acquire an existing business with a proven track record in the container shipping sector. The Commission noted that under the ownership of the Abu Dhabi Ports Co., Delanord Investments will be able to deliver a new level of service and support for international customers, enabling it to fulfil its ongoing priority of achieving continuous improvement in its systems and processes to serve global trade.
Further taking note of the vertical and horizontal overlaps of the parties in their respective markets, the Commission stated that the precise delineation of relevant markets can be left open as irrespective of the delineation, the Proposed Combination will not cause any appreciable adverse effect on competition in India.
Appearing for Abu Dhabi Ports Company- Pranjal Prateek (Partner), Alisha Mehra (Senior Associate) and Armaan Gupta (Associate), Khaitan & Co.
The acquisition deal between Abu Dhabi Ports Company and Delanord Investments sparks interest in the realm of competition law. Looking forward to seeing how this development unfolds and its implications on competition dynamics. Can’t wait to delve deeper into the legal intricacies of this transaction