The Competition Commission has approved the proposed acquisition of urea and customised fertilisers business of Tata Chemicals by Norway's Yara Fertilisers.
Under the deal, Tata Chemicals will sell its urea plant in Babrala, Uttar Pradesh, which has an annual capacity of about 1.2 million tonnes for an estimated Rs 2,670 crore.
In a tweet, the Competition Commission of India (CCI) said it has cleared "acquisition of Babrala unit of Tata Chemicals Ltd by Yara India".
As per the announcement made by Tata Chemicals in August, it will transfer the business of sale and distribution of urea and customised fertilisers, manufactured in Babrala, UP, by way of a slump sale to Yara Fertilisers.
The urea business, along with the assets, liabilities and contracts, among others, will be transferred to Yara India.
Mergers and acquisitions beyond a certain threshold requires the approval of CCI, which keeps a tab on unfair business practices across sectors.
Yara India is a 100 per cent subsidiary of Yara Asia Pte. Tata Chemicals is part of the diversified Tata group.
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