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Hero Future's stake buy by Abu Dhabi Future Energy gets CCI nod under green channel

Shrishty Singh

New Delhi, Oct 30 (PTI) The Competition Commission of India (CCI) has given nod under the green channel route to Abu Dhabi Future Energy Company for acquiring equity stake in Hero Future Energies Global Ltd.

Besides, the transaction also involves acquisition of non-voting compulsorily convertible preference shares in Hero Future Energies Private Ltd.

'The proposed combination in terms of...Combination Regulations (i.e. notice for approval of combinations under green channel) is deemed to be approved,' the CCI said in a statement.

The Abu Dhabi Future Energy Company PJSC (Masdar) is an international renewable energy and sustainability company that provides solutions in energy, water, urban development and clean technologies, it added.

Hero Future Energies India is primarily engaged in the implementation of power projects and generation of power through renewable sources of energy, among other activities.

The transaction represents an attractive investment opportunity for the acquirer in the renewable energy sector in India, a combination notice filed with the CCI said.

This is second clearance given under the 'green channel' route by the fair trade regulator.

Before this, the regulator had approved acquisition of Essel Mutual Fund by a Sachin Bansal-owned entity in October.

The green channel concept -- recommended by the high-level panel that reviewed competition law in August -- allows for an automatic system for speedy approval of certain categories of merger and acquisitions.

Under the framework, green channel approvals can be availed in combinations where there are no horizontal overlaps, no existing or potential vertical relationships and no complementary business activities between the combining parties, or their respective group entities, or involving any entity in which any of the combining partied hold shares or have control. PTI SRS HRS