Team News Riveting
The Competition Commission of India (CCI) approved acquisition of Indo Gulf Fertilisers, an arm of Grasim Industries, by Indorama India Private Limited (IIPL) under Section 31(1) of the Competition Act, 2002, today.
The proposed combination relates to the acquisition by IIPL of Indo Gulf Fertilizers (‘Target Business’) viz. fertiliser division of Grasim Industries Limited (‘GIL/Seller’), as a going concern on a slump sale basis.
IIPL is principally engaged in manufacture, trading and sale of fertilisers, primarily, phosphatic fertilisers and speciality plant nutrients.
GIL is engaged in production of viscose staple fibre, chloralkali, fertiliser (through Target Business), textiles and insulators. It is also engaged in producing cement and providing financial services through its subsidiaries.
The Target Business is principally engaged in manufacture, trade and sale of urea, customised fertilisers, agri-inputs, crop protection, plant and soil health products and specialty fertilizers with a 1.2 million tonne per annum urea manufacturing plant at Jagdishpur in Uttar Pradesh.
Grasim Industries has sold its fertiliser business for Rs 2,649 crore in November last year.
The divestment of the fertiliser business is a value unlocking exercise for Grasim. It will further enable the company to pursue growth opportunities in its core businesses, Grasim had said in a statement.
