The acquisition forms a part of the French firm’s efforts to expand its presence in the gas value chain worldwide
The Competition Commission of India (CCI) has approved the acquisition of a 37.4% stake by French firm Total in Indian natural gas distribution company Adani Gas in a bid to create one of the largest integrated gas utilities in the country.
The acquisition is a part of Total’s strategy to expand its presence in the gas value chain worldwide and provides an opportunity for the French firm in the future of natural gas business in India as the government shifts its focus on natural gas instead of petroleum-based products.
CCI, in a statement, said: “Total Group believes in the initiatives taken by the Government of India to increase the reliance on natural gas instead of petroleum-based products.”
The deal allows AGL to complete the on-going projects
Proceeds from the sale will be used by AGL to secure the financing and expertise required to efficiently complete the on-going projects.
As per the terms of the deal signed in October 2019, Total will acquire up to 25.2% shares in Adani Gas from public shareholders and the remaining 12.2% shares from the Adani family.
According to Total, the Indian gas utility is looking to grow its gas distribution in a 10-year timeframe to reach nearly 7.5% of the Indian population in more than 15 states.
Adani Gas is also planning to establish 1,500 CNG stations for gas distribution during the next 10 years while aiming to distribute gas to six million households in the next decade.
Commenting on the deal, Adani Group chairman Gautam Adani earlier said: “Total’s investment in Adani Gas reinforces India’s natural gas and demand potential.
“The partnership will derive significant synergies between Adani’s capabilities of developing world-class assets and Total’s global best practices as well as leveraging business synergies across LNG, Fuel Retail and City Gas distribution.”
Currently, the Total and Adani are working on various assets in the gas value chain, especially the Dhamra LNG terminal on the east coast of India and potentially the Mundra LNG Terminal on the west coast.