The Competition Commission of  India has approved the proposed acquisition of 11% to 20% of shareholding of the AWL Agri Business Limited by Lence Pte. Ltd.

AWL Agri Business Limited (formerly – Adani Wilmar Limited) (Target) is engaged in FMCG business comprising primarily of edible oil, food, FMCG and Industry essential segments (including soaps, cleaners, etc.).

Lence Pte. Ltd. (Acquirer) is a wholly-owned subsidiary of Wilmar International Limited and belongs to the Wilmar Group. Wilmar Group does not have a direct business presence in India except through the Target and Shree Renuka Sugars Limited (SRS). SRS is engaged in the business of milling, refining and selling of sugar.

The proposed transaction involves acquisition of up to a maximum of 20% of the paid-up equity share capital, and a minimum of 11% of the paid-up equity share capital of the Target by the Acquirer (Proposed Combination).  As on date, the Acquirer already holds 43.94% of the paid-up equity share capital of the Target. Accordingly, post the Proposed Combination, the Acquirer will hold a maximum of 63.94% and a minimum of 54.94% paid-up equity share capital of the Target.

Detailed order of the Commission will follow.

Competition approval permits a foreign subsidiary to increase its shareholding, resulting in a majority stake in the target company. The Competition Commission of India approved Lence Pte. Ltd.'s proposed acquisition of between eleven percent and twenty percent of AWL Agri Business Limited, increasing the Acquirer's shareholding from forty three point nine four percent to a post transaction holding between fifty four point nine four percent and sixty three point nine four percent.