Hotel LeelaVentures Limited
Case brief
What is this about?
The Competition Commission of India approved the proposed acquisition of The Leela, Goa hotel by Ceres Hotels Private Limited via a slump sale. The Commission found no horizontal or vertical overlap and held the combination unlikely to have an appreciable adverse effect on competition in India.
What did the court decide?
The proposed combination is approved under Section 31(1) of the Act.
What the court decided
COMPETITION COMMISSION OF INDIA
(Combination Registration No. C-2015/10/321)
Fair Competition For Greater Good
30.11.2015
Notice under Section 6 (2) of the Competition Act, 2002 (“Act”) given by Ceres Hotels Private Limited .
Order under Section 31(1) of the Competition Act, 2002
- On 08.10.2015, Ceres Hotels Private Limited (“ Acquirer ” or “ Ceres ”) filed a notice under sub-section (2) of Section 6 of the Act in relation to the proposed acquisition of, The Leela, Goa (“ Target ”), a hotel owned by Hotel Leelaventure Limited (“ HLVL ” or “ Seller ”) pursuant to the execution of a Business Transfer Agreement (“ BTA ”) signed between Ceres, HLVL and MetTube International Pte. Ltd. (Singapore) (“ MetTube ”) on 19.09.2015. Hereinafter, Ceres and HLVL are collectively referred to as the “ Parties ”.
- As per the notice, the combination relates to the acquisition of the Target, which is a 5 star deluxe luxury hotel on a going concern basis, by way of a slump sale. Other agreements beside the BTA that facilitate the proposed combination are “Agreement to Sell” and “Promoter Undertaking”, executed on 19.09.2015, and a proposed “Hotel Operation and Management Services Agreement” (“ HMA ”). It may be noted that while the ownership of the said hotel is being transferred to Ceres, the operations of the said hotel would still be managed by HLVL under HMA. Further, HLVL has granted a sub license to Ceres to continue use the brand name “Leela”. (“ Proposed Combination ”).
Issues for consideration
2 issues framed by the court
Whether the proposed acquisition of a 5-star hotel by Ceres Hotels via a slump sale would have an appreciable adverse effect on competition in India.
Whether the proposed combination falls under Section 5(a) of the Act and requires prior approval.
Parties & counsel
- applicant
Ceres Hotels Private Limited
- applicant
Hotel Leelaventure Limited
- other
MetTube International Pte. Ltd.
Case details
As recorded by the court registry
Similar cases
Judgements on the same questions, provisions and authorities, from every court