Tata’s takeover bid for three Odisha based power utilities being accepted by CCI and its significance

Introduction

Tata Power Company’s proposed acquisition of a 51% stake each in three force utilities in Odisha has been cleared by reasonable exchange controller CCI. The company is to purchase the stakes in Western Electricity Supply Company of Odisha (WESCO), Southern Electricity Supply Company of Odisha Ltd (SOUTHCO) and Central Electricity Supply Company of Odisha Ltd (CESCO).

The arrangement comes after discrete serious offering measures started by the Odisha Electricity Regulatory Commission. The Competition Commission of India (CCI) has endorsed the proposed transaction of the entities, as indicated by a delivery gave on Tuesday. Tata Power Company’s proposed acquisition of a 51% stake each in three force utilities in Odisha has been cleared by reasonable exchange controller CCI.

The proposed transaction acts in favour of both parties involved as the Tata groups power sector will benefit most out of it. Tata power group have been constantly evolving through its wide range of productions and affordable products. Already Tata Power Company has a considerable amount of market share currently in the market and with the current incubation, Tata will surely empower itself to be a majority shareholder of the market.

The company is to purchase the stakes in western Electricity Supply Company of Odisha (WESCO), Southern Electricity Supply Company of Odisha Ltd (SOUTHCO) and Central Electricity Supply Company of Odisha Ltd (CESCO). The transaction ensures

WESCO is into dispersion and retail supply of force in five western locales - Rourkela, Burla (Sambalpur), Bhawanipatna (Kalahandi), Bolangir and Bargarh. SOUTHCO serves six areas, including Berhampur, Aska, Bhanjanagar, Jeypore and Rayagada. CESCO obliges four focal regions - (Bhubaneswar 1 and Bhubaneswar 2), Cuttack, Paradeep and Dhenkanal.

Conclusion

The current Competition Commission of India approved the acquisition of Western Electricity Supply Company of Odisha (WESCO), Southern Electricity Supply Company of Odisha Ltd (SOUTHCO) and Central Electricity Supply Company of Odisha Ltd (CESCO) and their current stakes purchased by Tata Power Company is certainly one of the crucial deal of merger and acquisition sector. This takeover is for sure going to change the dynamics of the market by allowing Tata to be one of the determinant stakeholders in the power sector.

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