India’s Adani Ports and Special Economic Zones (APSEZ) has secured key regulatory approval to acquire 89.6% stake in the Gangavaram Port .
The Competition Commission of India (CCI) approved the deal under Section 31(1) of the Competition Act, 2002.
The transaction involves APSEZ acquiring 89.6% shareholding in Gangavaram Port Limited (GPL), the entity which operates the port.
The move comes nearly a month after APSEZ announced plans to acquire a majority stake in GPL.
Gangavaram Port is located in Visakhapatnam, in the state of Andhra Pradesh.
The construction works for the port began in 2005 and it started trial operations in August 2008. It is developed as an all-weather, multipurpose port with a water depth of up to 21m.
The port is capable of handling fully laden Super Cape size vessels of up to 200,000 deadweight ton (dwt).
Under a concession agreement on Build-Own-Operate-Transfer basis with the government of Andhra Pradesh, GPL owns the Gangavaram Port as well as being responsible for the development and operations at the facility.
The concession period is of thirty years with two additional ten year options.
APSEZ is one of the largest private multi-port operators in the country. Currently, it is present across 11 domestic ports in six maritime states of Gujarat, Goa, Kerala, Andhra Pradesh, Tamil Nadu and Odisha.
The company also manages the complete logistics chain.
Recently, APSEZ signed an agreement to acquire the remaining 25% stake in Krishnapatnam Port for $381.88m (Rs28bn).
Krishnapatnam Port is located in Nellore district of Andhra Pradesh.