Agro Tech Foods will acquire the entire shareholding of DMFPL from its existing shareholders — Bharti Enterprises (including its subsidiaries) and DMPL India.
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 Proposed Combination:
1. Acquisition of DMFPL by ATFL:
- ATFL will acquire 100% shareholding in DMFPL from its existing shareholders—Bharti Enterprises Limited (BEL), Bharti Units (comprising Bharti SBM, Bharti RBM, Bharti RM, and Bharti Satya), and DMPL India.
- Upon completion, DMFPL will become a wholly owned subsidiary of ATFL
2. Equity Issuance to Bharti and DMPL India:
- ATFL will issue 20.95% equity shares to Bharti and 14.39% equity shares to DMPL India through preferential allotment, compensating them for their stake in DMFPL.
✔️ 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.
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.
Source: The Hindu Business Line