Shares of Zuari Agro Chemicals and Mangalore Chemicals & Fertilizers rose 2.44% to 3.74% at 11:01 IST on BSE after the Competition Commission of India cleared Zuari's proposal to buy additional 26% stake in the Vijay Mallya's group firm MCFL.
Zuari Agro Chemicals (up 3.74% at Rs 230.40) and Mangalore Chemicals & Fertilizers (up 2.44% at Rs 71.45) edged higher.
Meanwhile, the S&P BSE Sensex was down 36.06 points or 0.13% at 26,780.50.
Zuari entities' Rs 211-crore offer for additional 26% stake in Mangalore Chemicals & Fertilizers (MCFL) is supported by the existing promoters and would be a competing open offer to Deepak Fertilizers & Petrochemicals Corporation (Deepak Fertilizer)'s open offer.
Giving its green signal to Zuari entities' open offer, the Competition Commission of India (CCI) said that the proposed combination is not likely to have appreciable adverse effect on competition in India.
Deepak Fertilizers, which is also in the fray to snap up stake in MCFL, last month, received the green signal from CCI for its Rs 190-crore open offer.
Earlier, the capital market regulator Securities and Exchange Board of India (Sebi), which had given its go-ahead to the proposed stake purchase by Deepak Fertilizers and Zuari Group in MCFL, had also ruled that their respective open offers can commence only after CCI nod. Either of the two open offers can start only within 12 working days from receiving CCI approval for the second deal, Sebi had ruled at that time.
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