CCI approves Coromandel's acquisition of stake in NACL Industries

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Fair trade regulator CCI on Tuesday cleared Murugappa Group firm Coromandel International's proposal to acquire a stake in NACL Industries.

NACL, a listed entity, operates in the agro-chemical sector. It offers crop protection products and active ingredients.

"The proposed combination comprises acquisition of certain equity shares in NACL Industries Ltd (NACL) by Coromandel International Ltd (CIL)," the Competition Commission of India (CCI) said in a release.

CIL is a leading agri solutions provider. It operates in two major segments, nutrient and other allied businesses and crop protection.

"CCI approves acquisition of certain equity shares in NACL Industries Limited by Coromandel International Ltd," the regulator said in a post on X.

In March this year, Coromandel International announced the acquisition of a majority -- 53 per cent -- stake in NACL Industries Ltd for Rs 820 crore.

The company also said that it proposes to make an open offer to the public to acquire up to 26 per cent of the equity share capital in agro-chemical firm NACL Industries, as per the Sebi takeover rules.

A share purchase agreement has been signed amongst Coromandel International, NACL Industries, the seller (KLR Products Ltd), K Lakshmi Raju (being a promoter) and Bright Town Investment Advisor (being a member of the promoter/promoter group of NACL), Coromandel International said.

The acquisition will help in expanding Coromandel's scale, accelerating its entry into contract manufacturing business, fast-tracking new product commercialisation and expanding its product portfolio, it added.

Coromandel International reported a turnover of Rs 22,290 crore for FY23-24. It is a part of the Murugappa Group.

Deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices.