CCI Approvals on December 31st  2024

On December 31 2024, the Competition Commission of India (CCI) has approved the following proposals:

i.The certain stake acquisition of Hyderabad (Telangana)-based Fourth Partner Energy Limited (FPEL), India’s leading renewable energy company focusing on building and financing renewable energy projects jointly by Washington, D.C. (the United States of America, USA)-based International Finance Corporation (IFC), a member of the World Bank Group (WBG), Manila (the Philippines)-based Asian Development Bank (ADB) and German government’s DEG (Deutsche Investitions und Entwicklungsgellschaft mbH).

ii.Virginia (the USA)-based Mars, Incorporated (Mars) to acquire all outstanding equity shares of Chicago (the USA)-based Kellanova (formerly Kellogg Company), a Delaware corporation listed on the New York Stock Exchange(NYSE) for USD 36 billion.

iii.Acquisition of 72.89% voting share capital in Indore (Madhya Pradesh, MP)-based Prataap Snacks Limited by Mumbai (Maharashtra)-based Authum Investment & Infrastructure Limited(Authum), a Non-Banking Finance Company (NBFC) registered with the Reserve Bank of India (RBI) and Ms. Mahi Madhusudhan Kela.

CCI Approved Stake Acquisition Jointly by IFC, ADB and DEC in Fourth Partner Energy Limited

The CCI has approved the Washington, D.C. (the USA)-based International Finance Corporation (IFC), a member of the World Bank Group (WBG), Manila (the Philippines)-based Asian Development Bank (ADB) and German government’s DEG which provides financing, advise, and support to private sector enterprises operating in developing and emerging-market nations, proposal to jointly buy stake in Hyderabad (Telangana)-based Fourth Partner Energy Limited (FPEL), India’s leading renewable energy company focusing on building and financing renewable energy projects.

• As per the proposed arrangement, IFC, an international organisation, constituted in 1956, which aimed to further boost the economic growth in its developing member nations by promoting private sector development; DEG and ADB will collectively invest USD 275 million (approximately Rs 2,296.25 crore) in FEPL.
• The consortium’s investment will infuse capital to fund FPEL’s business expansion plans which include a target portfolio of 3.5 GW of renewable energy assets by 2026.
• Under this arrangement, each entity will acquire a certain percentage of FPEL’s (Target) share capital through primary subscription and secondary purchase.

CCI Approved the Proposal of Mars, Incorporated to Acquire All Outstanding Equity Shares of Kellanova 

The CCI has approved the proposal of Virginia (the USA)-based Mars, Incorporated (Mars) to acquire all outstanding equity shares of Chicago (the USA)-based Kellanova (formerly Kellogg Company), a Delaware corporation listed on the New York Stock Exchange (NYSE) for USD 36 billion.

• As per the proposed arrangement, merger sub, a directly 100%-wholly owned subsidiary of Acquirer 10VB8 LLC (Acquirer), will merge with and into Kellanova.
• On completion of the acquisition, Kellanova will become an indirect wholly-owned subsidiary of Mars.

Note: Mars operates its business mainly in three segments: snacking, food and nutrition, and petcare.

CCI Approved Prataap Snacks Buyout by Mahi Madhusudan Kela, Authum Investment

The CCI has approved the proposed acquisition of 72.89% voting share capital in Indore (Madhya Pradesh, MP)-based Prataap Snacks Limited by Authum Investment & Infrastructure Limited (Authum), a Non-Banking Finance Company (NBFC) registered with the Reserve Bank of India (RBI) and Ms. Mahi Madhusudhan Kela.

• As per the proposed arrangement, Authum, which provides services like: investment in listed and unlisted companies; investment in real estate; among others and Ms. Mahi Madhusudhan Kela will be Acquirer No.1 and Acquirer No.2, respectively.
• Prataap Snacks Limited, a listed company incorporated in 2009, which is engaged in the business of snacks food and its products are featured under the popular ‘Yellow Diamond’ and Avadh brands will be the Target company.

Key Points about Acquisition:

The proposed transaction is divided into two parts:

i.Acquisition by Acquirer No.1 of equity shares accounting 42.33% of the voting share capital of the Target by a share purchase agreement with sellers like: Peak XV Partners Growth Investment Holdings I, Peak V Partners Growth Investments II and Sequoia Capital GFIV Mauritius Investments.

• While, Acquirer No.2 will buy equity shares accounting for 4.54% of the Voting Share Capital of the Target from the above mentioned – sellers. It will result in combined acquisition of equity shares accounting 46.87% of the Voting Share Capital in the Target Company.

ii.Both Acquirers had publicly announced an Open offer to purchase up to 62.98 lakh fully paid-up equity shares, each with face value of Rs 5, from the company’s public shareholders. This accounts for 26.01% of the voting share capital of the target company.

iii.Following the completion of acquisition, the Acquirer No.1 will become the promoter of the Target and Acquirer No.2 will become a member of the promoter group of the Target.

About Competition Commission of India(CCI):
It is a statutory body constituted under Competition Act, 2002.
Chairman- Ravneet Kaur
Headquarters- New Delhi, Delhi
Established- 2003