Aditya Birla Nuvo Ltd has won the Competition Commission's approval for acquiring a majority stake in Pantaloon retail format business from Kishore Biyani-promoted Future group.

The Competition Commission of India (CCI) gave the approval to the proposed acquisition, saying the deal will likely not pose an adverse effect on competition in the market.

Granting the approval, the CCI said, "The Commission is of the opinion that the proposed combination is not likely to have an adverse effect on competition in India".

Aditya Birla Nuvo Ltd had proposed to acquire the stake in Pantaloon retail format business through a subsidiary. The Future Group had announced that Aditya Birla-led firm would invest Rs 1,600 crore and acquire a majority stake in its Pantaloon store chain. This was later to create a separate entity.

The two parties had sought the watchdog's approval for the deal in July this year.

Meanwhile, Aditya Birla Nuvo is reportedly planning to double its urea production capacity by spending as much as $1 billion as a new government policy is guaranteeing returns on investments.

Union food minister K V Thomas has just announced that the government would assure new urea units a profit margin 12 per cent to 20 per cent. The Planning Commission expects that the assured profit margins would attract investments of as much as Rs 50,000 crore in the field.