Kerala reviews MSC's $1.4bn Vizhinjam port stake deal
Kerala says Adani did not seek state approval before agreeing to sell a 49% stake in the Vizhinjam port concessionaire to MSC's terminal arm.
Kerala has put MSC Group's planned $1.397bn entry into Adani Vizhinjam Port Private Limited (AVPPL) under scrutiny, saying Adani Ports and Special Economic Zone (APSEZ) did not seek state approval before agreeing to sell a 49% interest in the port concessionaire. APSEZ signed the share purchase and subscription agreement on 29 June with Mundi Limited, a subsidiary of MSC's Terminal Investment Limited (TiL), valuing AVPPL at $2.85bn.
The Vizhinjam concession bars a change of ownership of 25% or more, or board control, without prior approval on national-security and public-interest grounds. TiL's commitment comprises $539m for the stake and $858m linked to completing the port expansion by December 2028. Opposition leaders questioned whether combining a major liner operator and port operator could affect competition and trade interests.
Vizhinjam, near Thiruvananthapuram, opened in December 2024 with 1.6m teu of capacity, which APSEZ plans to expand to 5.7m teu by 2028. The port lies about 10 nautical miles from the main east-west shipping route. The transaction remains subject to regulatory approvals.
Source: PortNews (via Maasmond Maritime press clippings).
