The Competition Commission of India has approved the acquisition of India’s second largest private port by Adani Ports and Special economic Zone Limited (APSEZ).
The 23 July announcement will see Krishnapatnam Port, Andhra Pradesh, join ten other ports owned by APSEZ.
“This is a milestone moment for expansion of our pan-India footprint and accelerating growth with goodness,” APSEZ said in a statement.
The approval of the deal sees APSEZ acquire a controlling stake of 75% from the existing shareholders of Krishnapatnam Port Company (KPCL).
KPCL is a multi-cargo facility located in the southern part of Andhra Pradesh, the state with the second largest coastline of in India.
Acquisition value of KPCL is reported to amount to approximately 135 million Rupee ($1.9 million). The purchase consideration will be funded through internal accruals and existing cash balance.
Speaking earlier in 2020 Karan Adani, CEO of APSEZ said in a statement, “KPCL is a crown jewel to join APSEZ’s string of pearls, our network of 10 economic gateways to India and this acquisition would accelerate our stride towards FY2025 vision of handling 400 MMT of cargo.”