Fair trade regulator CCI has given its approval to Shapoorji Pallonji & Company Ltd and Khurshed Yazdi Daruvala to buy additional 11.38 per cent stake in Sterling and Wilson, as the proposed deal will not lead to any change in control of management of the firm.
Under the proposed transaction, the stake in Sterling and Wilson would be acquired from GS Strategic Investments, following which the shareholding of Shapoorji Pallonji and Daruvala in the company would be hiked to 65.8 per cent and 33.33 per cent, respectively.
At present, Shapoorji Pallonji holds 55.10 per cent stake in Sterling and Wilson, while Daruvala shareholding in the firm stands at 32.63 per cent.
In an order dated May 8, the Competition Commission of India (CCI) said that "the proposed acquisition would not result in any change in control of the affairs and management of Sterling and Wilson by the acquirers, the Commission hereby approves the same under...the (Competition) Act".
Sterling and Wilson provides MEP (mechanical, electrical, and plumbing) services, including designing, erection and commissioning of projects.
Shapoorji Pallonji & Company is engaged in construction business in India and abroad while Daruvala is one of the promoters of Sterling and Wilson.
The entities had entered into a share purchase agreement on March 20, after which they had approached the fair trade regulator for its approval on April 1.