Wilmar International Receives CCI Nod to Acquire 20% Stake in AWL Agri Business from Adani Group

The Competition Commission of India (CCI) has approved Wilmar International's plan to acquire up to a 20% stake in AWL Agri Business Ltd from the Adani Group. This decision follows Adani Group's announcement in July to sell the stake for Rs 7,150 crore, aiming to exit the FMCG sector and concentrate on infrastructure.

Wilmar International, through its subsidiary Lence Pte, is set to acquire this stake. The transaction involves purchasing between 11% and 20% of AWL Agri Business's paid-up equity share capital. Currently, Wilmar holds a 43.94% stake in AWL Agri Business through Lence Pte.

Wilmar's Stake Expansion

Upon completion of the acquisition, Lence Pte's stake in AWL Agri Business will increase to a maximum of 63.94% or a minimum of 54.94%. The CCI confirmed this development in a post on X, stating its approval for Lence Pte Ltd's proposed acquisition of shares in AWL Agri Business Ltd.

Founded in 1991, Wilmar International is a leading agribusiness group based in Singapore. The company operates in India primarily through AWL Agri Business and Shree Renuka Sugars Ltd (SRS), which focuses on sugar milling, refining, and sales.

Adani Group's Strategic Shift

In December last year, Adani Group announced its intention to divest its entire 44% stake in AWL to focus more on core infrastructure businesses. Adani Enterprises stated that its Board has approved the share purchase agreement with ACL and Lence, part of the Wilmar Group.

The agreement specifies that ACL will sell up to a 20% stake in AWL Agri Business to Lence at Rs 275 per share, valuing the deal at Rs 7,150 crore. Regulatory approval is necessary for deals exceeding certain thresholds to ensure fair competition and prevent unfair practices.

AWL Agri Business Financial Performance

Recently, AWL Agri Business reported a decline in consolidated net profit by 21% to Rs 244.85 crore for the September quarter. This is compared to Rs 311.02 crore during the same period last year. However, total income increased to Rs 17,525.61 crore from Rs 14,552.04 crore year-on-year.

The CCI plays a crucial role in monitoring large transactions like this one to maintain fair competition in the market. The approval of Wilmar's acquisition marks a significant step for both companies involved as they adjust their business strategies.

With inputs from PTI