Wilmar International Seeks CCI Nod to Acquire 20 pc Stake in AWL Agri Business for Rs 7,150 cr

Wilmar International, through its arm Lence Pte, has sought approval from the fair trade regulator CCI to acquire a 20 per cent stake in AWL Agri Business Ltd from the Gautam Adani-led Adani group.

The move came after Adani Group last month announced that it had sold a 20 per cent stake in AWL Agri Business (formerly Adani Wilmar Ltd) to Singapore-based Wilmar International for Rs 7,150 crore, as part of its decision to exit the FMCG business and focus on its infrastructure vertical.

"The acquirer (Lence Pte Ltd) proposes to acquire up to a maximum of 20 per cent of the paid-up equity share capital, and a minimum of 11 per cent of the paid-up equity share capital of the target (AWL Agri Business Ltd)," according to a notice filed with the Competition Commission of India (CCI).

Currently, Wilmar, through Lence, owns a 43.94 per cent stake in AWL Agri Business. After the completion of the proposed transaction, Wilmar's shareholding in the company will rise to between 54.94 per cent and 63.94 per cent, giving the Singapore-based agribusiness group the majority owner of the company.

The parties said, "The increase in shareholding of the acquirer (Lence Pte) in the target on account of the proposed combination will not lead to any competition concerns, and the delineation of relevant markets is not required." The proposed transaction has been notified under Section 5(a) of the Competition Act, 2002, dealing with acquisitions of shares and voting rights.

Founded in 1991, Singapore-headquartered Wilmar International is Asia's leading agribusiness group. The group does not have a direct business presence in India except through AWL Agri Business and Shree Renuka Sugars Ltd (SRS). SRS is engaged in the business of milling, refining and selling sugar. In July, Adani Group said it had sold a 20 per cent stake in AWL Agri Business to Wilmar International, Singapore, for Rs 7,150 crore, as part of its decision to exit the FMCG business and focus on the infrastructure vertical.

Adani Commodities LLP (ACL), a subsidiary of Adani Enterprises, will soon sell the residual 10.42 stake in AWL Agri Business Ltd, leading to a complete exit from the FMCG business, it said. In January, ACL had already sold a 13.51 per cent stake in AWL through the offer for sale route, generating Rs 4,855 crore. Adani Group is expecting over Rs 15,700 crore from the complete divestment of its 44 per cent stake in AWL Agri Business, which sells edible oil and other food products under the Fortune brand.

In December last year, Adani Group had announced the divestment of its entire 44 per cent stake in AWL to sharpen its focus on core infrastructure businesses. Adani Enterprises informed that the Board has approved the execution of the share purchase agreement amongst itself, ACL and Lence (part of Wilmar Group).

As per the agreement, ACL will sell up to 20 per cent stake in AWL Agri Business to Lence at Rs 275 per share, in a deal valued at Rs 7,150 crore. ACL, which currently has a 30.42 per cent stake in AWL Agri Business, will soon divest the remaining 10.42 per cent stake to investors. Adani Group and Singapore-based Wilmar Group together held around 88 per cent in the company (44 per cent each).

In January 2025, AEL/ACL sold 13.5 per cent of its shareholding in AWL at Rs 276.51 per share. This was done so that more of the company's shares are owned by the public, as required by minimum public shareholding requirements. Following the latest transaction, Wilmar International will become the majority shareholder in AWL Agri Business with a 64 per cent holding, overtaking Adani.

Pursuant to the completion of these transactions, ACL would completely exit AWL. During the 2024-25 fiscal year, AWL Agri Business Ltd had posted a net profit of Rs 1,225.81 crore on a total income of Rs 63,910.28 crore.