The Competition Commission of India has approved the proposed acquisition by Torrent Power Limited of 100 per cent equity shares and non-cumulative optionally convertible redeemable preference shares in Nabha Power Limited from L&T Power Development Limited. The approval covers the transaction on a fully diluted basis and follows the statutory merger review process. The commission has indicated that a detailed order will follow.

Torrent Power Limited is a public listed company engaged in power generation, power transmission, power distribution and the manufacture and supply of power transmission cables. The company belongs to the Torrent Group, which is engaged inter alia in the power, pharmaceuticals and gas distribution sectors. The description reflects the acquirer group activities relevant to the notified combination.

Nabha Power Limited, the target, is a wholly owned subsidiary of L&T Power Development Limited, the seller. The target operates two units of 700 Megawatt (MW) each, comprising a supercritical thermal power plant located at Rajpura in Punjab that has been in commercial operation since 2014. The plant configuration and operational status were material to the commission's assessment.

The proposed combination will transfer control over the target to the acquirer if consummated and is expected to align with Torrent Power's existing generation and distribution operations. The commission's approval clears the parties to proceed subject to any conditions that may be set out in the final order. Market participants and stakeholders will await the detailed order for any specific remedies or disclosures.

The seller, L&T Power Development Limited, will divest the target as part of the notified combination under the transaction agreement. The approval followed an assessment of the transaction architecture on a fully diluted basis. The commission reviewed the implications for market structure and potential overlaps.

Parties may announce further commercial details after completion. Stakeholders will monitor the final order closely.