Competition Commission of India (“CCI”) vide Press Release No. 88/2024-2025[1], dated December 31, 2024, approved the acquisition of certain shareholding of Fourth Partner Energy Private Limited (“Target”) by International Finance Corporation (“IFC”), Asian Development Bank (“ADB”) and Deutsche Investitions-und Entwicklungsgesellschaft mbH (“DEG”).
A proposed investment of USD 275 million (United States Dollars Two Hundred and Seventy-Five Million) is set to be made by the IFC, ADB and the DEG, collectively. The IFC, ADB, and DEG will each acquire a certain percentage of the Target’s share capital through primary subscription and secondary purchase.
The IFC, established in 1956, is an international organization which facilitates economic growth in its developing member countries by promoting private sector development. The IFC is a member of the World Bank Group and with its own articles of agreement, share capital, financial structure, management, and staff. It supports sustainable growth in developing countries by financing private sector projects, mobilizing capital in international financial markets, and offering advisory services to both businesses and governments.
The ADB, established in 1966, under the ADB Charter, has 69 member countries, which collectively own the multilateral financial institution set up for the promotion of development activities in the member states. The ADB provides loans, technical assistance, grants, and equity investments to promote the development of its developing member countries.
The DEG offers financing, advisory, and support to private sector enterprises operating in emerging markets. DEG assists its customers with market knowledge, climate and impact expertise, and access to its international network to facilitate forward-looking investments that generate a development impact.
Target, along with its affiliates, provides integrated renewable energy solutions, including the installation, ownership, and operation of solar and wind power plants that supply electricity to commercial and industrial customers. Additionally, Target is engaged in the provision of Engineering, Procurement, and Construction (“EPC”) services, along with Operations and Maintenance (“O&M”) services, primarily on a captive basis, while also providing limited EPC and O&M services to third-party commercial and industrial clients.
[1] https://www.cci.gov.in/media-gallery/press-release/details/475/0