CCI approves merger of Agro Tech Foods, Bharti Enterprises, DMPL India and Del Monte Foods

By Pune Media On Jan 21, 2025 16

The Competition Commission of India (CCI) has approved a proposed combination involving Agro Tech Foods Ltd (ATFL), Bharti Enterprises Limited (BEL), DMPL India Limited (DMPL India), and Del Monte Foods Private Limited (DMFPL). The transaction is expected to have a significant impact on India’s packaged food industry.

Details of the Transaction

The approved combination consists of the following key transactions:

Acquisition of 100 per cent shareholding: ATFL will acquire the entire shareholding of DMFPL from its existing shareholders — Bharti Enterprises (including its subsidiaries) and DMPL India. Following this acquisition, DMFPL will become a wholly-owned subsidiary of ATFL.

Issuance of Equity Shares:

In consideration for the acquisition, ATFL will issue 20.95 per cent of its equity shares to Bharti and 14.39 per cent to DMPL India through preferential allotment.

Entities involved in the transaction include multiple units of the Bharti Group, namely Bharti (SBM) Holdings Private Limited, Bharti (RBM) Holdings Private Limited, Bharti (RM) Holdings Private Limited, and Bharti (Satya) Trustees Private Limited (on behalf of Bharti (Satya) Family Trust).

Company profiles

Agro Tech Foods Ltd (ATFL) is a publicly listed company engaged in the manufacture, marketing, and sale of a variety of food products and edible oils.

Bharti Enterprises Ltd (BEL) is a conglomerate primarily involved in management consultancy services within the Bharti Group.

DMPL India Ltd is an investment holding company with controlling stakes in various branded food and beverage companies. While it holds investments in DMFPL, it does not have direct business operations in India.

Del Monte Foods Private Ltd (DMFPL) is a major producer and seller of packaged foods, including snacks, ready-to-eat meals, sauces, spreads, dips, edible oils, and pasta in India.

Market implications

The acquisition is expected to strengthen ATFL’s market position in the packaged food sector, enhancing its product portfolio and expanding its distribution network. With growing consumer demand for convenience foods, this strategic move may enable ATFL to consolidate its presence in the competitive market.

A detailed order from the Competition Commission outlining the terms and conditions of the approval will be issued in due course.

Published on January 21, 2025

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