Adani Group Secures CCI Nod for Jaiprakash Associates Acquisition

The Competition Commission of India (CCI) has approved Adani Group’s proposal to acquire Jaiprakash Associates Ltd (JAL), marking a significant step forward in the conglomerate’s expansion in the cement and infrastructure sectors. This regulatory clearance comes as a major milestone for Adani, though the acquisition process is still subject to approval from the Committee of Creditors (CoC) overseeing JAL’s debt resolution.

Jaiprakash Associates, part of the Jaypee Group, has been struggling under a heavy debt load for years, prompting lenders to seek strategic buyers under India’s Insolvency and Bankruptcy Code (IBC) process. The acquisition is expected to strengthen Adani’s footprint in the cement industry, where it has rapidly scaled operations since its acquisition of Holcim’s Ambuja Cements and ACC in 2022.

The transaction, which involves acquiring a substantial portion of JAL’s cement assets, will not only bolster Adani’s market share but also provide relief to lenders that have been grappling with JAL’s prolonged financial distress. JAL has been classified as a non-performing asset for several years, and its resolution has been closely watched by industry observers.

Industry experts note that CCI’s clearance was anticipated, given Adani’s existing dominance in the cement sector, but the approval underscores confidence in the group’s capacity to absorb and revive stressed assets. Adani Cement is currently the second-largest cement producer in India, with an annual production capacity of nearly 70 million tonnes, and the acquisition could significantly increase this figure.

This development is also seen as part of the Adani Group’s broader strategy to consolidate its position across sectors including cement, energy, ports, logistics, and airports. Adani has been on a rapid expansion spree even after facing scrutiny from global investors following allegations raised in early 2023. The regulatory approval signals continued domestic confidence in the conglomerate’s growth trajectory.

With the CCI nod secured, the focus now shifts to the Committee of Creditors, which will assess and approve the resolution plan before the National Company Law Tribunal (NCLT) gives its final go-ahead. If completed, the acquisition could be one of the largest transactions in India’s cement sector and a crucial test case for the resolution of heavily indebted infrastructure companies.