Bunge to acquire Amrit Banaspati's edible oil, fats business
22 Dec 2011
New York-based $46 billion agriculture and food conglomerate Bunge Ltd yesterday acquired the edible oil and fats business of BSE-listed Amrit Banaspati, for Rs221 crore.
The acquisition carried out through Bunge's Indian subsidiary Bunge India Private Limited, will pay an additional Rs104 crore for buying the trademark 'Gagan' owned by Amrit Corporation, which is currently licensed to Amrit Banaspati.
Bunge, whose consumer brands in India are Dalda, Masterline and Chambal, will also pay Rs47 crore as non-compete fee or a period of five years to key promoters Naresh Kumar Bajaj, Ashwin Kumar Bajaj and Vikram Kumar Bajaj, taking the entire deal size to Rs372 crore.
The transaction includes Amrit Banaspati's manufacturing facility at Rajpura in the state of Punjab, rights to its brands and trademarks, its sales and distribution business and the transfer of employees of its edible oils and fats business to Bunge India.
The deal, which is subject to regulatory approvals and other customary closing conditions, has been unanimously approved and recommended by the boards of directors of both companies, but requires the approval by shareholders of Amrit Banaspati and Amrit Corp.
Post-acquisition, Noida-based Amrit Banaspati will continue to operate a commodities trading division and will explore venturing into real estate and other promising business opportunities. It will also recommend an appropriate dividend to shareholders from proceeds of the sale.
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