Image Source: Just Food
Aug 16, 2018
Fair trade regulator Competition Commission has finally approved the acquisition of Ruchi Soya by Adani Wilmar, as it finds no Appreciable Adverse Effect on Competition in proposed acquisition of Ruchi Soya by Adani Wilmar Limited.
Adani Wilmar, which sells cooking oil under the Fortune brand, and Baba Ramdev-led Patanjali were in the fight to acquire Ruchi Soya. Adani has emerged as the highest bidder (H1) with an offer of about Rs. 6,000 crore, while Patanjali’s bid is worth around Rs. 5,700 crore.
Not satisfied with the above decision, Patanjali Ayurveda has filed complaint against Adani Wilmar to Competition Commission of India (CCI) for acquisition of debt ridden Ruchi Soya, which is facing insolvency proceedings, some months ago. Looking at the present scenario mergers and acquisitions beyond a certain threshold require the approval of the Competition Commission of India.
Ruchi Soya has a total debt of about Rs.12, 000 crore. The company has many manufacturing plants and its leading brands include Nutrela, Mahakosh, Sunrich, Ruchi Star and Ruchi Gold.