CCI gives approval under the green channel route to Abu Dhabi Future Energy to acquire stake in Hero Future Energies

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 (HFE UK). The transaction also involves acquisition of non-voting compulsorily convertible preference shares in Hero Future Energies Private Ltd.

Abu Dhabi Future Energy Company – incorporated in Abu Dhabi, is an international renewable energy and sustainability company that provides solutions in energy, water, urban development and clean technologies.

Hero Future Energies Private Ltd (HFE India), a company incorporated in India, is a wholly owned subsidiary of Hero Future Energies Asia Pte. Ltd, which is 100% held by HFE UK. HFE India is primarily engaged in the implementation of power projects and generation of power through renewable sources of energy, and also provides professional consultancy services in relation thereto.

The Proposed Combination is in terms of Regulation 5A of the Combination Regulations (i.e. notice for approval of Combinations under Green Channel).

According to the CCI, the transaction represents an attractive investment opportunity for the acquirer in the renewable energy sector in India. This is second clearance given under the 'Green Channel' route by the CCI.

The first clearance under the Green Channel route was given in October in the acquisition of Essel Mutual Fund by Sachin Bansal-owned entity BAC Acquisitions Pvt. Ltd.