CCI clears Zuari's 26% open offer for Mallya Group's MCFL
Paving the way for competing open offers for Mangalore Chemicals and Fertilizers' shareholders, fair trade watchdog Competition Commission of India (CCI) has cleared Zuari's proposal to buy additional 26 per cent stake in the Vijay Mallya group firm.
Deepak Fertilizers, which is also in the fray to snap up stake in Mangalore Chemicals and Fertilizers Ltd (MCFL), last month received the green signal from the Competition Commission of India for its Rs 190-crore open offer.
Zuari entities' Rs 211-crore offer for 26 per cent stake in MCFL is supported by the existing promoters and would be 'a competing open offer' to Deepak Fertilizers' offer.
Giving its green signal, the commission said the 'proposed combination is not likely to have appreciable adverse effect on competition in India'.
Zuari Fertilisers and Chemicals is currently setting up a Single Super Phosphate plant in Maharashtra and does not yet manufacture or trade in any fertiliser products. The entity is a wholly-owned subsidiary of Zuari Agro Chemicals, which is into manufacture and trading of fertilisers.