Green Light for Growth: CCI Approves Coromandel International’s Acquisition of Majority Stake in NACL Industries

India’s Competition Commission (CCI) has officially approved Coromandel International’s acquisition of a 53% stake in NACL Industries, paving the way for a major consolidation in the country’s agro-chemical sector. The Murugappa Group’s Coromandel International will invest ₹820 crore in the deal, and is also set to launch an open offer to acquire up to an additional 26% of NACL’s equity, as per SEBI takeover regulations.

 

Key Highlights:

 

Majority Stake Acquisition: Coromandel International will acquire 53.13% of NACL Industries’ paid-up equity, marking a significant expansion of its footprint in crop protection and agro-chemicals.

 

Regulatory Clearance: The CCI’s approval comes after a thorough review, with both companies noting that while there are some overlaps in herbicides, fungicides, insecticides, and plant growth regulators, the transaction does not raise any adverse competition concerns in the Indian market.

 

Strategic Rationale: The acquisition will accelerate Coromandel’s entry into contract manufacturing, fast-track new product commercialization, and expand its product portfolio, strengthening its position as a leading agri-solutions provider.

 

Open Offer: In compliance with SEBI rules, Coromandel will make an open offer to public shareholders to purchase up to 26% more of NACL’s equity, potentially increasing its stake further.

 

Share Purchase Agreement: The deal involves agreements with NACL’s existing promoters, including KLR Products Ltd, K Lakshmi Raju, and Bright Town Investment Advisor, ensuring a smooth transition of control.

 

This acquisition underscores the ongoing consolidation in India’s agro-chemical sector and positions Coromandel International for accelerated growth and innovation.

 

Sources: Economic Times, Business Standard, The Week