Wilmar International gets CCI nod to acquire 20 pc stake in AWL Agri Business

New Delhi, Nov 11 (PTI) Fair trade regulator CCI on Tuesday cleared Wilmar International's proposal to acquire up to 20 per cent stake in AWL Agri Business Ltd from Adani Group.

The move came after Adani Group in July this year announced that it will sell a 20 per cent stake in AWL Agri Business (formerly Adani Wilmar Ltd) to Singapore-based Wilmar International for Rs 7,150 crore, as part of its decision to exit the FMCG business and focus on its infrastructure vertical.

Wilmar International, through its arm Lence Pte, is acquiring the stake in AWL Agri Business Ltd.

"The proposed transaction involves acquisition of up to a maximum of 20 per cent of the paid-up equity share capital, and a minimum of 11 per cent of the paid-up equity share capital of the target (AWL Agri Business) by the acquirer (Lence Pte Ltd)," the regulator said in a release.

Wilmar, through Lence Pte, holds a 43.94 per cent equity stake in AWL Agri Business.

After the completion of the combination, Lence Pte will hold a maximum of 63.94 per cent and a minimum of 54.94 per cent paid-up equity share capital of AWL Agri Business Ltd, the Competition Commission of India (CCI) said.

"CCI approves proposed acquisition of 11 per cent to 20 per cent of shareholding of the AWL Agri Business Ltd by Lence Pte Ltd," the competition watchdog said in a post on X.

Founded in 1991, Singapore-headquartered Wilmar International is Asia's leading agribusiness group. The group does not have a direct business presence in India except through AWL Agri Business and Shree Renuka Sugars Ltd (SRS).

SRS is engaged in the business of milling, refining and selling sugar.

In December last year, Adani Group had announced the divestment of its entire 44 per cent stake in AWL to sharpen its focus on core infrastructure businesses.

Adani Enterprises informed that the Board has approved the execution of the share purchase agreement amongst itself, ACL and Lence, part of Wilmar Group.

As per the agreement, ACL will sell up to 20 per cent stake in AWL Agri Business to Lence at Rs 275 per share, in a deal valued at Rs 7,150 crore.

The deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace.

Last week, edible oil major AWL Agri Business reported a 21 per cent decline in consolidated net profit to Rs 244.85 crore in the September quarter.

Its net profit stood at Rs 311.02 crore in the year-ago period.

Total income rose to Rs 17,525.61 crore during the July-September period of this fiscal from Rs 14,552.04 crore in the corresponding period of the preceding year, according to a regulatory filing. PTI HG HG SHW