CCI approves Patanjali Foods’ acquisition of its home and personal care business

The Competition Commission of India has given its approval to Patanjali Foods to acquire Patanjali Ayurved’s home and personal care business, which includes its haircare and skincare product lines. The deal is valued at Rs 1,100 crore.

“The proposed combination involves the acquisition of Patanjali Ayurved Ltd’s (PAL) Home and Personal Care (HPC) business division (nonfood business) by Patanjali Foods Ltd (PFL),” announced the Competition Commission of India, India Retailing reported.
 
Patanjali Foods made a regulatory filing in July this year noting its plans to acquire Patanjali Ayurved’s personal care business. “The consideration for the acquisition shall be Rs 1,100 crore, payable by the company to the seller in tranches,” announced Patanjali Foods at the time. The business also announced that it intends to pay the acquisition cost over five tranches, ET Bureau reported.
 
Patanjali Ayurved’s main business is manufacturing, packaging, labelling, and trading Ayurvedic medicines along with skincare, haircare, dental care, and home care goods. Patanjali Foods focuses on activities including refining crude oil, processing oilseeds, and producing soya-based food items.
 
The acquisition is part of Patanjali Foods’ plan to become a large-scale business in India’s fast moving consumer goods market. One of Patanjali Foods’ promoters is Patanjali Ayurved and the acquisition is being carried out as a related-party transaction on a fair value and arm’s-length basis.