Agro Tech Foods Receives CCI Nod to Acquire Del Monte Foods for Rs 1,300 Crore

Agro Tech Foods Ltd, supported by Samara Capital, has received approval from the Competition Commission of India (CCI) to acquire Del Monte Foods' Indian operations. This acquisition involves purchasing a 100% stake in Del Monte Foods Pvt Ltd (DMFPL) from Bharti Enterprises and DMPL India. Following this transaction, DMFPL will become a wholly owned subsidiary of Agro Tech Foods.

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Details of the Acquisition

The acquisition deal includes issuing equity shares in Agro Tech Foods to Bharti and DMPL India. Specifically, Bharti will receive 20.95% and DMPL India 14.39% of equity shares through preferential allotment. This arrangement is part of the consideration for Agro Tech's complete acquisition of DMFPL.

Bharti Enterprises, led by billionaire Sunil Bharti Mittal, provides management consultancy services within its group. Meanwhile, DMPL India functions as an investment holding company with interests in branded food and beverage firms but lacks a direct business presence in India beyond its investment in DMFPL.

Background and Strategic Moves

Agro Tech Foods announced its intention to acquire Del Monte Foods in November last year. The deal, valued at Rs 1,300 crore, involves a share-swap agreement between Bharti Enterprises and Del Monte Pacific. Upon completion, Del Monte will become a fully owned subsidiary of Agro Tech Foods, while Bharti Enterprises will hold nearly 21% of Agro Tech's shares.

Additionally, Agro Tech Foods will secure an exclusive, perpetual license for the Del Monte brand in India through this acquisition. This strategic move is expected to enhance Agro Tech's market presence and product offerings in the packaged food sector.

Bharti's Journey in the Food Sector

Bharti's involvement in the food industry began in 2004 with FieldFresh Foods, a joint venture with E L Rothschild focused on fresh produce exports. In 2007, Del Monte Pacific acquired a 40.1% stake in FieldFresh for USD 20.8 million. The company was later rebranded as Del Monte Foods Pvt Ltd in 2021.

Del Monte Foods Pvt Ltd is known for manufacturing and selling packaged foods like snacks, ready-to-eat meals, sauces, spreads, dips, edible oils, and pasta across India. This acquisition aligns with Agro Tech's strategy to expand its footprint in the Indian food market.

The CCI's approval marks a significant step forward for Agro Tech Foods as it integrates Del Monte into its operations. This move is anticipated to strengthen its position within the competitive landscape of India's packaged food industry.