A day after the announcement by Adani Ports and Special Economic Zone Limited (APSEZ) that the Switzerland-based Mediterranean Shipping Company (MSC) Group will acquire a 49% stake in Adani Vizhinjam Port Private Limited (AVPPL), the concessionaire and operating company for the Vizhinjam International Seaport, the State government on Wednesday made it clear that its approval was required for share transfer under the MSC-Adani agreement.Replying to a submission by Leader of the Opposition Pinarayi Vijayan in the Assembly, Chief Minister V.D. Satheesan said the proposed acquisition of a stake in the AVPPL by MSC had come to the attention of the government through media reports. Adani port authorities had not initiated any correspondence or communication with the government in this regard.“As per Clause 5.3 of the concession agreement, it is clearly stated that the concessionaire shall not undertake or permit any change in ownership except with the prior approval of the authority. Here, the authority refers to the Government of Kerala. Since the authority is the government, no change in ownership can be made without the prior approval of the Kerala government,” Mr. Satheesan said.“Further, according to the Companies Act, a change in ownership can be implemented only if more than 75% of the shares are transferred. However, under the concession agreement signed between the State government and Adani, a change in ownership is deemed to occur if 25% or more of the shares are transferred,” he said.Mr. Satheesan said even then, such a change cannot be implemented without the approval of the Kerala government. It had not yet approached the State government with any such proposal. “We will examine it when it comes before the Kerala government for consideration,” he said.As the Leader of the Opposition pointed out, there were certain concerns that need to be addressed, he added. First of all, the port had strategic importance from the perspective of national security. The approval of the Union Home Ministry and the Union Shipping Ministry was also required, apart from the approval of the State government.Secondly, public interest was an important consideration. From the perspective of public interest, it cannot be termed as a major issue. There should be a common user facility at the port. Under no circumstances should this company enjoy a monopoly there. The port should function as a common user facility for all users without discrimination, he said.“This company is not merely a financial investor; it is the largest container shipping company in the world. We need to examine how it intends to use the port,” he said.“The government will primarily ensure five things. First is national security. Second is the protection of public interest. Third, fair competition must be ensured. Fourth is investment promotion by maintaining an investment-friendly environment for all players. Fifth is the long-term development of the Vizhinjam port.”He said activities outside the port should also be examined carefully. The interests of the State’s revenue must also be taken into account. The government would consider granting approval only after examining all these aspects.According to the announcement made by Adani on Tuesday, MSC will acquire a 49% stake in the Vizhinjam port company for $1.397 billion (around ₹13,220 crore). MSC will make the investment through its container terminal operating and investment arm TiL. The APSEZ and TiL have entered into an agreement, and the transaction is subject to customary approvals, including regulatory approvals, according to the port company. Published - July 01, 2026 08:55 pm IST