The Competition Commission of India (CCI) has approved the proposed joint venture between BP Global Investments Limited and Reliance BP Mobility Limited (RBPML) under Section 31(1) of the Competition Act, 2002.

BP and Reliance Industries Limited (RIL) signed a definitive agreement relating to the formation of their new Indian fuels and mobility joint venture last December, following an initial heads of agreement in August 2019. The joint venture, Reliance BP Mobility Ltd (RBPML), builds on Reliance’s existing fuel retailing network and aviation fuel business in India. 

BP Global is an investment holding company and holds shares in subsidiaries and associated companies. It currently does not conduct any business operations in India.

RBPML currently does not conduct any business operations and, accordingly, does not have any business activities in India or anywhere else in the world. However, post the proposed combination, it will operate the business that will be transferred to RBPML by Reliance Industries Limited and its group entities.

Under the approved deal, BP Global is acquiring an aggregate 49% of the fully diluted paid-up equity share capital and voting rights in RBPML by way of acquisition of existing equity shares of RBPML from RIL and subscription by BP Global to fresh equity shares of RBPML.

CCI also approved the transfer of certain specified mobile aviation business assets at certain airport locations (which are currently owned and used by RIL) for RBPML to operate RIL’s aviation fuel business in India as a service provider.

Building from RIL’s existing businesses, the partners expect the joint venture to co-create a world class fuels partnership to grow rapidly and help meet India’s fast-growing demands for energy and mobility. The joint venture expects to expand from RIL’s current fuel retailing network of more than 1,400 retail sites and 30 aviation fuel stations across India to up to 5,500 retail sites and 45 aviation fuel stations over the next five years to become the most preferred provider of automotive and aviation fuels. 

The retail network will operate under the Jio-BP brand, signaling a new paradigm shift in fuels marketing and mobility solutions. It brings together Reliance’s extensive access and connection to consumers through its Jio digital platform and BP’s deep experience in fuel retailing around the world. The joint venture will seek to offer Indian consumers high-quality differentiated fuels, convenience and services. Castrol lubricants will also be available across the joint venture’s network.