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CCI Clears Dalmia's Bid To Acquire Jaiprakash Associates
Cement

CCI Clears Dalmia's Bid To Acquire Jaiprakash Associates

The Competition Commission of India (CCI) has approved the proposed acquisition of a 100 per cent stake in Jaiprakash Associates Limited (JAL) by Dalmia Cement (Bharat) Limited. JAL is currently undergoing insolvency resolution proceedings under the Insolvency and Bankruptcy Code (IBC), 2016. This approval marks a significant step ahead of the final decision by the committee of creditors (CoC), which is yet to select the successful bidder.
The CCI confirmed the clearance in a press statement issued on Tuesday, noting that a detailed order will be released in due course. The acquisition is part of a corporate insolvency resolution process (CIRP), and Dalmia Cement is a wholly owned subsidiary of Dalmia Bharat Limited (DBL), the flagship company of the Dalmia Bharat Group, which is primarily involved in cement manufacturing and sales.
JAL, a diversified conglomerate, is active in sectors including real estate, cement, hospitality, and engineering, procurement and construction. The company entered insolvency proceedings on 3 June 2024.
Alongside Dalmia, other bidders for JAL include the Adani Group, whose application is still pending with the CCI, as well as Vedanta Group, Jindal Steel & Power Ltd (JSPL), and PNC Infratech. The lenders had recently asked all resolution applicants to submit revised proposals free of conditional clauses and with clearly defined bid amounts.
However, many bids remain dependent on the outcome of an ongoing legal dispute surrounding Jaiprakash’s 1,000-hectare Sports City project in Greater Noida. In March, the Allahabad High Court upheld the Yamuna Expressway Industrial Development Authority’s (Yeida) decision to cancel the project’s land allotment. The case is now pending before the Supreme Court.
Following a recent Supreme Court ruling, resolution applicants must now obtain CCI approval before seeking clearance from the CoC. The Ministry of Corporate Affairs is, however, expected to propose amendments to the IBC that would clarify this requirement and potentially allow bids to be submitted without prior antitrust clearance. 

The Competition Commission of India (CCI) has approved the proposed acquisition of a 100 per cent stake in Jaiprakash Associates Limited (JAL) by Dalmia Cement (Bharat) Limited. JAL is currently undergoing insolvency resolution proceedings under the Insolvency and Bankruptcy Code (IBC), 2016. This approval marks a significant step ahead of the final decision by the committee of creditors (CoC), which is yet to select the successful bidder.The CCI confirmed the clearance in a press statement issued on Tuesday, noting that a detailed order will be released in due course. The acquisition is part of a corporate insolvency resolution process (CIRP), and Dalmia Cement is a wholly owned subsidiary of Dalmia Bharat Limited (DBL), the flagship company of the Dalmia Bharat Group, which is primarily involved in cement manufacturing and sales.JAL, a diversified conglomerate, is active in sectors including real estate, cement, hospitality, and engineering, procurement and construction. The company entered insolvency proceedings on 3 June 2024.Alongside Dalmia, other bidders for JAL include the Adani Group, whose application is still pending with the CCI, as well as Vedanta Group, Jindal Steel & Power Ltd (JSPL), and PNC Infratech. The lenders had recently asked all resolution applicants to submit revised proposals free of conditional clauses and with clearly defined bid amounts.However, many bids remain dependent on the outcome of an ongoing legal dispute surrounding Jaiprakash’s 1,000-hectare Sports City project in Greater Noida. In March, the Allahabad High Court upheld the Yamuna Expressway Industrial Development Authority’s (Yeida) decision to cancel the project’s land allotment. The case is now pending before the Supreme Court.Following a recent Supreme Court ruling, resolution applicants must now obtain CCI approval before seeking clearance from the CoC. The Ministry of Corporate Affairs is, however, expected to propose amendments to the IBC that would clarify this requirement and potentially allow bids to be submitted without prior antitrust clearance. 

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