Temasek group firms' addl stake buy in Olam gets CCI approval

The Competition Commission has approved a deal related to the purchase of additional stake in Olam International by Singapore government-owned Temasek's two group firms.
Approving the deal, the fair trade watchdog said it is not likely to have an appreciable adverse effect on competition in India.
The proposed deal involves Aranda Investments and Breedens Investments increasing their stake in agricultural products firm Olam International. The transaction would result in their shareholding increasing to 25.5 per cent in Olam from existing 21.4 per cent on a fully diluted basis.
Incorporated in Singapore, Aranda and Breedens are the indirect wholly-owned subsidiaries of Temasek.

Temasek is Singapore government's investment company.
In India, Olam is engaged in sourcing, processing, and merchandising of agricultural products including trading.

"Aranda and Breedens are investment holding companies of Temasek and are not engaged in the production/distribution/ sale of any of these products ... The acquirers, as well as Temasek, are not engaged in any of the businesses in which Olam operates in India," the order said.
CCI also noted that business activities of certain operating portfolio companies of Temasek are related to Olam, in the ordinary course of their commercial activities.
The boards of Aranda and Breedens had approved the deal on February 7.