M&A Magazine

With changing demographic profile of India, rapid urbanisation, spread of digital payments and increasing purchasing power, the retail sector is poised for a quantum leap. India is becoming one of the largest preferred retail destinations globally. The early indications are showing up now. In 2018, the retail sector received a record level of foreign direct investment ( FDI ) as a host of international companies have invested in India through mergers and acquisitions. Partnerships and acquisitions will gain traction as more players look to gain access to new capabilities in this space. Over the last two decades, the Indian retail industry has seen significant changes, evolving rapidly from traditional shops to large multi-format stores offering a global experience. The rapidly changing dynamics resulted in unprecedented growth in overall consumption with numbers suggesting that consumer expenditure in India is expected to almost double to $3,600 billion by 2020 from $1,824 billion i...

The Board of Directors of Bayer CropScience Limited and Monsanto India Limited, at its Meeting held inter alia, has considered the amalgamation of Monsanto India Limited with Bayer CropScience Limited. Bayer , a German stock corporation, is a life sciences company with core competencies in the areas of health care and agriculture. The activities of Bayer have carried out in three divisions i.e. pharmaceuticals; consumer health; and crop sciences. Bayer CropScience Limited (BCL) is the listed Indian arm of Bayer AG engaged in the business of manufacturing, selling, marketing of pesticides and pest control products, distribution of seeds and provision of services in the field of agriculture. Other than BCL, In India, Bayer also operates through various group companies. Monsanto , incorporated in the United States of America, is an agricultural company, which provides seeds, biotechnology traits and crop protection, globally. In addition, Monsanto is active in providing digital ...

Hindustan Unilever outruns Nestle and bags GSK’s nutrition business in its kitty. This being the country’s biggest consumer goods deal is an all equity deal. Hindustan Unilever Ltd (HUL) , incorporated in 1933 and is a subsidiary of Unilever, one of the world's leading suppliers of Food, Home Care, Personal Care and Refreshment products. Unilever has over 67% shareholding in HUL. HUL is India's largest fast-moving consumer goods company with a heritage of over 80 years in India. HUL operates in four business segments, they are: Personal care includes products in the categories of oral care skin care, soaps, hair care, talcum powder and colour cosmetics. Home Care includes detergent bars detergent powders Foods & Refreshments Water purifier called Pureit The shares of HUL are listed on BSE and NSE and current market cap is ~₹3,86,076 Crores. GlaxoSmithKline Consumer Healthcare Ltd (GSK), is one of the largest players in the Health Food Drinks industry in India...

In order to meet the disinvestment target of ₹ 80,000 crore for this financial year, the Cabinet Committee on Economic Affairs has given an in-principal approval for the strategic sale of 52.63% stake in Rural Electrification Corporation (REC) to Power Finance Corporation (PFC) along with transfer of management control. The proposed deal is likely to fetch the government around ₹15,000 crores and after the closure of the deal, REC will become a subsidiary of PFC. The proposed deal is similar to the one where Oil and Natural Gas Corporation (ONGC) acquired the government's entire 51.11% stake in oil refiner Hindustan Petroleum Corporation last year for nearly ₹37,000 crores. The upstream state-owned oil behemoth financed the deal with market borrowing of ₹25,000 crores. Also, the proposed deal will be along the lines of government's idea to create large public sector companies by consolidating companies based of common factors and functions. In an otherwise stressed secto...

RT Exports Limited (‘RTEL’) was incorporated as a Private Limited Company under the name and style of “R.T. Exports Private Limited” on 1 st May, 1980 in the state of Maharashtra having its registered office at Mumbai. The company converted to a Public Limited company and the name was changed to “RT Exports Limited”. The company got listed on BSE on 30 th July 2001. The company is engaged in business of export and local trading of agri-products especially Basmati rice which is procured from Bundi, Rajasthan and exported under the brand name “White Pearl” to various countries like US, UK, European and Gulf countries. Transaction The company proposes to reduce its entire issued and paid-up Preference share capital under section 66 of the Companies Act, 2013 (‘Act’). The Company has issued 700,000, 9% Cumulative Preference Shares of Rs. 100/- each fully paid-up which are due to be redeemed on or before March 31, 2020. The Company has further issued 11,98,258, 6% Non-Cumulative Pref...

Skipper Limited (Skipper), incorporated in 1981, is the largest manufacturer of Transmission & Distribution Structures in India with engineering and manufacturing facilities in Eastern India. The company takes advantage of the available power and steel supply, the cost-effective labour, and proximity to ports. It has four state-of-the-art manufacturing plants in this region, two in Jangalpur; one in Uluberia near Kolkata, West Bengal; and one in Palasbari, near Guwahati). The Guwahati plant commenced operations in March 2017 and aims to tap the growing demand for T&D products in the North East region. The total installed capacity of Engineering products now stands at 265,000 MT. The company’s Polymer Product Segment has a manufacturing capacity of 51,000 MTPA. Over 70% of the gross block is less than six years old, and Skipper is one of the very few companies in India to be assured of CPVC for the manufacture of state-of-the-art pipes. Skipper is the only Company in the sec...