The Competition Commission of India (CCI) has approved the takeover of CG Power and Industrial Solutions Ltd by publicly listed Tube Investments of India Ltd, part of the Murugappa Group.
The CCI said CG Power is presently undergoing financial stress and is in immediate need of funds to continue its operations as a going concern for which the lenders of CG Power have initiated the process for resolution of stress in accordance with the Stressed Asset Directions.
In August, the CG Power board had accepted Tube Investment’s proposal to invest ₹700 crore following a Swiss challenge bidding process, which was initiated by the lenders to CG Power.
Two business units
CG Power is a publicly listed entity with two major business units — power systems and industrial systems. The power systems business unit focusses on power transmission, distribution, power solutions, setting up of integrated power systems and associated services businesses.
The industrial systems business unit consists of rotating machines (motors and alternators) across a wide spectrum of power and ratings, automated AC, DC and variable frequency drives and control systems, among others.