CCI approves acquisition of Heinz India Private Limited by Zydus Wellness Limited and Cadila Healthcare Limited

On December 6, 2018, CCI approved acquisition of 100% shareholding of Heinz India Private Limited (‘Heinz India’) by Zydus Wellness Ltd. (‘Zydus’) and Cadila Healthcare Ltd. (‘Cadila’). [1]

Zydus operates in the consumer products segment with products ranging from healthy fat spreads, personal care to sugar substitutes. Cadila, is stated to be engaged in the business of pharmaceutical formulations, biologics, etc. Both Zydus and Cadila are stated to belong to the Zydus Family Trust group.

Heinz India belongs to the Kraft Heinz Group and manufactures food and other products, including tomato ketchup, energy drinks, ghee etc., through brands such as Complan, Glucon-D, Nycil, and Sampriti Ghee etc.

The proposed combination related to acquisition of Heinz India’s businesses relating to four brands, namely, Glucon-D, Nycil, Sampriti Ghee and Complan (‘Target Business’). The transaction was structured in a way such that a new company incorporated by Heinz Italia would acquire all the assets, facilities, employees, contracts, IP, etc., that are not related to the Target Business.

In its competitive assessment, CCI noted that there were no horizontal overlaps or vertical relationships between Zydus/ Cadila and Heinz India. In light of the above, CCI approved the combination as it was not likely to have any AAEC in India in any of the markets.

[1] Combination Registration No. C- 2018/12/612

Published In:Inter Alia Special Edition- Competition Law - March 2019 [ English
Date: March 1, 2019