Murugappa Group agency Coromandel Worldwide has sought honest commerce regulator CCI approval to amass a majority stake in NACL Industries.
NACL, a listed entity, operates within the agro-chemical sector. It affords crop safety merchandise and lively substances.
“CIL (Coromandel Worldwide Ltd) proposes to amass sure fairness shares in NACL. The proposed transaction is notifiable to the Competitors Fee of India underneath part…of the Competitors Act, 2002,” mentioned a discover filed with the Competitors Fee of India (CCI) on April 7.
In its submission to the CCI for the evaluation of the proposed transaction, Coromandel Worldwide and NACL Industries mentioned the enterprise actions of the events exhibit sure horizontal and vertical overlaps throughout the agro-chemical sector.
Nonetheless, the exact definition of the related market(s) could also be left open because the proposed transaction is not going to increase any adversarial competitors issues.
The related markets affected embrace herbicides, fungicides, pesticides, lively substances, and plant progress regulators (together with biostimulants) in India, the discover mentioned.
The businesses have left the exact market definitions open, stating that the overlaps aren’t important sufficient to influence market dynamics adversely.
“…Sure markets recognized based mostly on the vertical overlaps between the enterprise actions of the Events may be thought of,” it added.
Final month, Coromandel Worldwide Ltd introduced to amass a majority — 53 per cent stake — NACL Industries Ltd for Rs 820 crore.
The corporate additionally mentioned that it proposes to make an open supply to the general public to amass as much as 26 per cent of the fairness share capital in agro-chemical agency NACL Industries, as per the Sebi takeover guidelines.
A share buy settlement has been signed amongst Coromandel Worldwide, NACL Industries, the vendor (KLR Merchandise Ltd), Okay Lakshmi Raju (being a promoter) and Shiny City Funding Advisor (being a member of the promoter/promoter group of NACL), the corporate mentioned.
The acquisition will assist in increasing Coromandel’s scale, accelerating its entry into contract manufacturing enterprise, fast-tracking new product commercialisation and increasing its product portfolio, it added.Coromandel Worldwide reported a turnover of Rs 22,290 crore for FY23-24. It is part of the Murugappa Group.
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