CCI okays TPG's proposal to acquire majority stake in Siemens Gamesa's biz

New Delhi, Jul 15 (PTI) Fair trade regulator CCI on Tuesday cleared US-based private equity firm TPG's proposal to acquire a majority stake in Siemens Gamesa's onshore wind turbine generator manufacturing business in India and Sri Lanka.

TPG through its affiliates -- Peony Properties Pvt Ltd (PPPL), TPG REGen SG Pte Ltd -- is acquiring the stake in Siemens Gamesa's business.

The Competition Commission of India (CCI) has also approved MAVCO Investments and former JSW Energy CEO Prashant Jain's minority stake acquisition and continued investment from Siemens Gamesa.

"The proposed combination pertains to the acquisition of the businesses relating to the manufacturing and assembly of onshore wind turbine generators and the operation, maintenance and technical services of wind turbines and/or onshore wind power projects by PPPL, TPG REGen SG, Mavco, Tikri, and Siemens Gamesa Renewable Power (SGRE) from SGRE and Siemens Gamesa Renewable Energy Lanka (Pvt) Ltd (SGREL)," the regulator said in a release.

MAVCO Investments, a private company belonging to select members of the Murugappa family, and Tikri Investments is a partnership firm, belonging to Prashant Jain and his wife Seema Jain.

SGRE is a wholly-owned indirect subsidiary of Siemens Energy AG (SEAG). SEAG is the ultimate controlling entity of the Siemens Energy Group.

"CCI approves acquisition of business relating to onshore wind turbine generators from Siemens Gamesa Renewable Power Pvt. Ltd.(SGRE) and Siemens Gamesa Renewable Energy Lanka (Pvt) Ltd by Peony Properties, TPG REGen, Mavco Investments, Tikri Investments and SGRE," the regulator said in a post on X.

In March this year, TPG and Siemens Gamesa announced that they have entered into an agreement under which TPG would acquire a majority stake in Siemens Gamesa's onshore wind turbine generator manufacturing business in India and Sri Lanka.

MAVCO Investments will also make a significant minority investment alongside TPG, in addition to continued investment from Siemens Gamesa. Meanwhile, former JSW Energy chief Prashant Jain will also pick up a minority stake as Climate Change Partner in the venture.

In a separate release, the competition watchdog also approved proposed combination involving acquisition of 100 per cent shareholding in SMC Power Generation Ltd by Rungta Sons Pvt Ltd.

Rungta Sons is a private limited company engaged in the business of mining of iron ore and manganese ore, and manufacturing of ferro alloys while SMC Power Generation is in the business of manufacturing and sale of sponge iron, steel billets, Thermo Mechanical Treatment (TMT) bars, pig iron and ferro alloys (specifically, silico manganese).

The deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace. PTI HG MR HG ANU ANU