Mercuria and TISPL to Establish Joint Venture Trading Entity in Dubai
Mercuria Energy Netherlands B.V. and Tata International Singapore (Pte) Limited (TISPL) are moving forward with a joint venture agreement aimed at establishing a new joint venture company within the Dubai International Financial Centre (DIFC) in the United Arab Emirates (UAE). This Proposed Transaction involves the creation of a new commodities trading and investment group, which will operate under the Target entity.The transaction involves Mercuria Energy Group Limited, through its subsidiary Mercuria, and TISPL. The proposed venture is set to focus on commodities trading and investment, including metals, minerals, agricultural products, and oil and gas products, utilizing subsidiaries across various jurisdictions, including India.
Mercuria, a private limited liability company based in the Netherlands, is globally recognized in the energy and commodity sector. Its core activities encompass the trading of energy products such as crude oil and other petroleum products, alongside biodiesel, natural gas, electricity, carbon emission rights, and coal, with secondary involvement in base metals and petrochemicals.
Following the completion of the Proposed Transaction, the Target, which is a private company in the DIFC, UAE, will function as the joint venture entity for Mercuria and TISPL.
The Parties indicated that the Proposed Transaction does not raise any competition concerns, regardless of how relevant markets are defined, and will not alter the competitive landscape in any market within India. However, for the purpose of clarifying relevant market definitions for the Commission, the Parties identified the following horizontally overlapping markets:
- Broad market for trading of coal in India
- Narrow market for trading of thermal coal in India
- Broad market for trading of crude oil and refined petroleum products in India
- Narrow market for trading of refined petroleum products in India
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