CCI levies penalty of Rs 55 lakh on TPG Group, ADIA

24 Aug 2023 , 12:30 PM

The Competition Commission of India has fined Abu Dhabi Investment Authority (ADIA) and TPG Group a total of Rs 55 lakh for making false declarations to the regulator while using the green channel facility in a deal involving the acquisition of a stake in UPL Sustainable Agri Solutions Ltd (UPL SAS).

According to the CCI order, the acquirers, ADIA and TPG Group, must pay the penalty jointly and severally.

The deal involves the acquisition of a share in UPL SAS by Platinum Trust and TPG Upswing via the Upswing Trust, according to the CCI order.

The Platinum Trust’s sole beneficiary and settlor is Abu Dhabi Investment Authority, and TPG Upswing is part of the TPG Group.

The Competition Commission of India (CCI) received a notice in this regard from Platinum Trust, acting through Platinum Trustee, and TPG Upswing, jointly in December 2022.

The regulator noted that the UPL SAS transaction was completed on or before February 17, 2023, as the notifying parties (ADIA and TPG) provided notice under the green channel approval facility.

The parties to the combination can take advantage of the green channel route only if their respective group entities and/or any entity in which they, directly or indirectly, hold shares and/or control do not exhibit horizontal overlap, vertical interface, or complementarity, according to the watchdog.

Following that, CCI issued a show cause notice in May, observing that Upswing Trust owns a 22.2% investment in UPL Corporation Ltd (UPLC), which manufactures formulated crop protection products (FCPPs).

CCI observed overlaps in the activities of Arysta India, UPL SAS, and SWAL. Arysta India is also an indirect subsidiary of the Upswing Trust’s portfolio firm.

For feedback and suggestions, write to us at [e-mail]