The Competition Commission of India (CCI) has approved the creation of a joint venture company between Mercuria Energy Group Limited (Mercuria Energy) and Tata International Singapore (Pte) Limited (TISPL). The approval covers the formation of a private company to be established in the Dubai International Financial Centre (DIFC), United Arab Emirates (UAE), and associated pre-closing restructuring and transfers. The regulator indicated that the clearance permits the parties to proceed with the Proposed Combination under applicable competition laws.

Mercuria Energy is a Netherlands incorporated private limited liability company and, together with its affiliates, is a globally active energy and commodity group. Its core activities encompass trading of crude oil and other petroleum products, biodiesel, natural gas, electricity and carbon emission rights, and include coal, base metals and petrochemicals to a more limited extent. The Commission record noted that Mercuria will contribute trading expertise and global market access to the joint venture.

Post closing of the Proposed Combination, the Target will operate as a joint venture entity of Mercuria Energy and TISPL and will be incorporated as a private company in the DIFC. It is proposed that the newly formed commodities trading and investment entity will engage in trading of commodities including metals, minerals, agricultural products and oil and gas products through subsidiaries in various jurisdictions including India. The filing indicated that the commercial activities will be conducted in accordance with applicable laws and subject to customary regulatory requirements.

Detailed order of the Commission will follow and further procedural information will be provided when the record is finalised. The CCI assessment focused on competition aspects of the Proposed Combination and cleared the transaction subject to the terms recorded in its decision. The parties are expected to complete necessary steps to give effect to the combination in line with regulatory approvals and internal corporate requirements.