CCI Greenlights Major Stake Acquisitions by Ashoka Buildcon and Viva Highways

The Competition Commission of India has approved the proposed acquisition of 34% equity shareholding of Ashoka Concessions (ACL) by Ashoka Buildcon (ABL) and certain convertible instruments of ACL by ABL and Viva Highways (Viva); and 26% shareholding of Jaora Nayagaon Toll Road Company (JN) by Viva

The proposed combination envisages the acquisition of 34% equity shareholding of ACL by ABL and certain convertible instruments of ACL by ABL and Viva, and 26% shareholding of JN by Viva.

ABL (including its affiliates) is primarily engaged in engineering, procurement and construction (EPC) in various sectors and operation and maintenance (O&M) of roads and highways. ABL operates its road assets through various models i.e., EPC, Build Operate and Transfer (BOT) and Hybrid Annuity Model (HAM) models.

ACL, the infrastructure arm of the Ashoka Group, is active in operation and maintenance of roads and highways in India through its various subsidiaries, which operate road assets. It was floated by ABL for bringing the various BOT based road and highway projects under one umbrella.

JN, a BOT concessionaire, has been granted concession by the Madhya Pradesh Road Development Corporation for reconstruction, strengthening, widening, and rehabilitation of 125 Km to 250 Km of State Highway (SH)-31 in the state of Madhya Pradesh.