Fair trade regulator CCI has cleared FMCG firm Ruchi Soya Industries proposed acquisition of Ruchi Infrastructure's oil refining business, as the deal does not raise adverse competition concerns in the country.
As per the deal, Ruchi Soya Industries would acquire the oil refining business of its group firm Ruchi Infrastructure, "as a going concern, on a slump sale basis".
Both the entities are promoted by Madhya Pradesh-based Shahra family.
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In an order dated April 15, the Competition Commission of India (CCI) said that "the proposed combination is not likely to have an appreciable adverse effect on competition in India".
"India is one of the largest edible oil markets in the world. As per information available in public domain around 50 per cent of the domestic demand of edible oils in India is met through imports," CCI noted in the order.
"Moreover, the market share of RSIL (Ruchi Soya Industries Ltd) in both the refined oil and vanaspati segment would not increase in any significant manner due to the proposed combination," it added.
Ruchi Soya is engaged in the business of developing and processing soybean seeds, manufacturing of crude edible oil and oil seed extractions, refining, marketing and supplying of edible oil.
Ruchi Infrastructure is primarily engaged in the business of providing storage infrastructure of liquid commodities, warehousing facilities for storage of agricultural commodities such as wheat and soybean.
The companies had entered into the 'Business Transfer Agreement' on March 7. Following this Ruchi Soya Industries had approached CCI to seeking its approval on the deal.
