CCI Approves Acquisition of Stakes in Ashoka Concessions and Jaora Nayagaon Toll Road Company

The acquisitions are expected to consolidate and enhance the capabilities of both ABL and Viva in infrastructure development, particularly in road construction and management.

The Competition Commission of India (CCI) has granted approval for the proposed acquisition of 34% equity shareholding in Ashoka Concessions Limited (ACL) by Ashoka Buildcon Limited (ABL) and certain convertible instruments of ACL by ABL and Viva Highways (Viva). Additionally, the CCI has approved Viva’s acquisition of 26% shareholding in Jaora Nayagaon Toll Road Company (JN).

Details of the Proposed Acquisition

The transaction involves:

1. 34% equity acquisition in ACL by ABL, along with convertible instruments in ACL by ABL and Viva.
2. 26% equity acquisition in JN by Viva.

The acquisitions are expected to consolidate and enhance the capabilities of both ABL and Viva in infrastructure development, particularly in road construction and management.

About the Key Entities

Ashoka Buildcon Limited (ABL)

ABL, including its affiliates, specializes in engineering, procurement, and construction (EPC) across multiple sectors, with a significant focus on roads and highways. It operates infrastructure projects through various models, including:

• EPC Contracts
• Build-Operate-Transfer (BOT) Models
• Hybrid Annuity Model (HAM)

Ashoka Concessions Limited (ACL)

ACL serves as the infrastructure arm of the Ashoka Group, established to manage BOT-based road and highway projects under a single entity. It oversees the operation and maintenance (O&M) of road assets through its subsidiaries.

Jaora Nayagaon Toll Road Company (JN)

JN is a BOT concessionaire tasked with projects awarded by the Madhya Pradesh Road Development Corporation. Its responsibilities include the reconstruction, strengthening, widening, and rehabilitation of 125 km to 250 km of State Highway (SH)-31 in Madhya Pradesh.

Implications of the Acquisition

This strategic acquisition is expected to:

• Strengthen ABL's portfolio in the road and highways sector.
• Improve operational efficiency and synergy across ABL and ACL projects.
• Enhance Viva’s role in the infrastructure space through its investment in JN.

The acquisition also aligns with India’s goal of boosting its infrastructure development, particularly in the road and highway sectors, to support economic growth and improve connectivity.

CCI’s Role in Ensuring Fair Competition

The CCI approval ensures that the acquisitions comply with competitive practices, fostering a robust and fair environment in the infrastructure and construction sectors.

This move signifies a step forward in enhancing private sector participation in large-scale infrastructure projects, crucial for meeting India’s growing transportation and connectivity needs.