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| Wockhardt-Danone deal gets CCI nod |
| Joe C Mathew / New Delhi Sep 17, 2011, 00:49 IST |
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No ‘appreciable adverse effect’ on competition, says watchdog.
Anti-competitive practices watchdog Competition Commission of India (CCI) has cleared pharmaceutical company Wockhardt’s proposal to sell its nutrition business to French food multinational Danone.
It said in an order yesterday the acquisition was unlikely to have an appreciable adverse effect on competition in India.
Danone will acquire Wockhardt’s nutrition business through G&K Baby Care Pvt Ltd, a special purpose vehicle registered in India for the transaction.
The acquisition includes intellectual property, brands and know-how, debtors, inventories and other movable assets, creditors, employees and nutrition-related research and development infrastructure. Danone will also acquire the contract manufacturing business of Carol Info Services, an arm of Wockhardt, in respect to nutrition products. Popular brands such as Farex, Dexolac, Nusobee and Protinex will move to the Danone stable as part of the deal. The agreement also involves transfer of nutrition-related intellectual property owned by Wockhardt EU, a wholly owned subsidiary that holds intellectual property rights for Wockhardt Group businesses, including pharmaceuticals and healthcare.
Danone had sought the CCI’s approval on August 24. Some of Wockhardt’s foreign currency convertible bond (FCCB) holders, engaged in a legal fight over repayment of their dues, had opposed an earlier attempt of the company to sell its nutrition business to US drug major Abbott a year ago. These FCCB holders are yet to reach a settlement with Wockhardt and a case is being heard in the Bombay High Court.
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