Hindustan Unilever gets CCI nod to acquire Minimalist in Rs 2,670 Cr deal

The Competition Commission of India (CCI) has approved FMCG major Hindustan Unilever's proposal to acquire beauty and personal care brand Minimalist's parent company Uprising Science.

Jaipur-based Uprising Science is engaged in the manufacturing and sale of beauty and personal care products, baby care and hair care items under the brand name 'Minimalist'.

"The proposed transaction involves the acquisition by Hindustan Unilever, of 90.5 per cent shareholding of Uprising Science Pvt Ltd (Target), with the eventual acquisition of the remaining 9.5 per cent shareholding of the target in about two years from the completion date as per the terms set out in the share purchase & subscription agreement executed by and between HUL and the target," CCI said in a release.

Hindustan Unilever Ltd (HUL), a leading FMCG player, owns more than 50 brands, including Lakme, Lux, Knorr, Kwality Wall's, and Surf Excel.

"Commission approves acquisition of Uprising Science Private Limited by Hindustan Unilever Ltd," the CCI said.

In January, HUL announced that it has signed and executed a share purchase and subscription agreement for the acquisition of 90.5 per cent of shareholding of Uprising Science, the firm behind Minimalist, comprising secondary buyout for a cash consideration of Rs 2,670 crore at a pre-money enterprise valuation of Rs 2,955 crore.

The company will also make a primary infusion of Rs 45 crore with an eventual acquisition of the remaining 9.5 per cent of Uprising's shareholding.

In a separate release, the competition watchdog said it has approved the acquisition of the steel-making coal portfolio of Anglo American Plc in Australia by Peabody MNG Pty Ltd and Peabody SMC Pty Ltd.

"The proposed transaction involves the acquisition by Peabody MNG Pty Ltd and Peabody SMC Pty Ltd, of a portion of assets and businesses associated with Anglo American Plc's steel-making coal portfolio in Australia," the regulator said.

Peabody MNG and Peabody SMC are newly incorporated special purpose vehicles. They are ultimately owned by Peabody Energy Corporation. The Peabody Group, is a global producer and supplier of metallurgical and thermal coal.

The group's activities in India are primarily focused on the sales of coal by way of imports.

The target business (steel-making coal) is currently owned and controlled by Anglo and its subsidiaries, which is a global mining company. In India, the business supplies coal by way of imports.

The Competition Commission also cleared the proposed acquisition of shareholding in Dhoot Transmission Pvt Ltd by BC Asia Investments XV Ltd and BC Asia Investments XVI Ltd, according to a separate release.

BC Asia Investments XV and BC Asia Investments XVI are indirectly owned and controlled by by Bain Capital Partners LLC (Bain Capital).

"The proposed combination envisages acquisition of shareholding in Dhoot Transmission Pvt Ltd (DTPL) by BC Asia Investments XV and BC Asia Investments XVI. Certain inter-connected transaction is also envisaged," CCI said.

DTPL is engaged in the manufacturing and sale of auto-components in the electrical and electronics category such as, wiring harnesses, automotive switches, electronic sensors, and automotive cables etc, to original equipment manufacturers. It also supplies wiring harnesses to the medical devices industry and the consumer durables industry.

Deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices and promotes fair competition in the marketplace.