The merger and acquisition (M&A) activity in the city gas distribution (CGD) segment has been witnessing an upward trend since the past one year. According to reports, Torrent Gas Private Limited is close to buying Mathura-based Sanwariya Gas Limited for a consideration of around Rs 1.40 billion. The acquisition of Sanwariya Gas will give Torrent Gas access to a gas pipeline network of 500 km and seven compressed natural gas stations to sell gas to around 15,000 vehicles, besides selling piped gas to 5,000 homes and 125 factories.
This would be the fourth acquisition of Torrent Gas in the last one year. The earlier three acquisitions by the Gujarat-based company include Mahesh Gas in Pune from the Mahesh Group, and Siti Energy in Moradabad and Dholpur from the Essel Group.
Earlier, in November 2020, Adani Gas Limited (AGL) signed a definitive agreement to acquire CGD in three geographical areas – Ludhiana, Jalandhar and Kutch (East), from a consortium led by Jay Madhok Energy. Further, AGL sold 37.4 per cent stake to France’s Total Gas for Rs 57 billion in February 2020.