Agro Tech Foods to Acquire 100% Stake in DMFPL: Received CCI Approval

The Competition Commission of India has approved the proposed combination involving Agro Tech Foods Limited (ATFL), Bharti Enterprises Limited (BEL), DMPL India Limited (DMPL India), and Del Monte Foods Private Limited (DMFPL).

The proposed combination includes the following elements:

1. ATFL acquiring 100% of the shareholding in DMFPL from its current shareholders—BEL, Bharti Units (as listed below), and DMPL India. After this acquisition, DMFPL will become a wholly-owned subsidiary of ATFL.
2. ATFL issued 20.95% and 14.39% equity shares to Bharti and DMPL India, respectively, through a preferential allotment, as consideration for ATFL’s full acquisition of DMFPL.

The Bharti Units consist of:

• Bharti (SBM) Holdings Private Limited (Bharti SBM)
• Bharti (RBM) Holdings Private Limited (Bharti RBM)
• Bharti (RM) Holdings Private Limited (Bharti RM)
• Bharti (Satya) Trustees Private Limited (on behalf of Bharti (Satya) Family Trust) (Bharti Satya).

About ATFL, BEL, DMPL

ATFL is a publicly listed company that manufactures, markets, and sells a wide range of food products and edible oils. BEL provides management consultancy services within the Bharti Group. DMPL India is an investment holding company with controlling interests in branded food and beverage companies that produce, market, and sell a variety of packaged goods, including fruit, vegetable, and tomato sauces, condiments, pasta, broth, stock, juices, and frozen food products under various brands.

DMPL India has no other business presence in India beyond its investment in DMFPL. DMFPL manufactures and sells packaged foods such as snacks, ready-to-eat foods, sauces, spreads and dips, edible oils, and pasta in India.

Conclusion

The Competition Commission of India has cleared the proposed combination involving ATFL, BEL, DMPL India, and DMFPL, which will result in ATFL acquiring full ownership of DMFPL. This transaction includes a preferential allotment of shares to Bharti and DMPL India as part of the consideration for the acquisition.

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