INDIA – The Competition Commission of India has approved Zydus Cadila’s bid to acquire Heinz India consumer wellness business in a deal with Cadila Healthcare, fourth largest pharmaceutical group in India, ET Retail reports.
Zydus will be acquiring the business related to the four brands GluconD, Nycil, Sampriti and Complan, through this transaction.
The approval by the CCI moves Zydus a step ahead in becoming a significant player in the fast growing categories of food, nutrition and skin care and through related synergies.
The CCI in a tweet said it “approves acquisition of business of Heinz related to four brands namely ‘Glucon-D’, ‘Nycil’, ‘Sampriti Ghee’ and ‘Complan’ byZydus/ Cadila”.
The deal to acquire Kraft Heinz India business was announced in October this year, in a transaction valued at US$628 million.
The acquisition also included two large manufacturing facilities of Heinz India in Aligarh and Sitarganj and teams devoted to operations, research, sales, marketing and support.
Of the brands acquired, Complan, GluconD & Nycil have a legacy of over 50 years while Glucon-D & Nycil are leading brands in their respective markets.
Heinz India is a subsidiary of the US-based Kraft Heinz while Cadila Healthcare holds majority stake in Zydus Wellness.
Zydus Wellness has brands like Sugar Free, EverYuth and Nutralite and the development grants it an opportunity to broaden its portfolio and invest in ‘healthy’brands.
Earlier this year, Kraft Heinz had shown considerations of selling the children’s milk drink brand Complan in India, a brand it bought from Glaxo in 1994.
The company’s third-quarter results reflected 1.6% increase in net sales to US$6.4 billion while organic sales increased 2.6% versus the year-ago period.
Comparable sales went up 2.6% in the quarter, which is the second quarter of growth since Kraft Heinz was created three years ago after both companies were merged in a deal worth US$49 billion.
In September, Kraft Heinz decided to sell the European holding company that operates the Indian business, requiring the buyer to absorb the tax losses of that entity, registered in Italy.