MOSCOW (MRC) -- Competition Commission of India (CCI) has cleared the proposed acquisition of Indo Gulf Fertilizers by Indorama India Private Ltd (IIPL), according to Kemicalinfo.
Indo Gulf Fertilizers is a part of Grasim Industries Ltd (GIL).
Indorama will acquire the business as a going concern on a slump sale basis, as per a notice filed with the watchdog.
“Commission approves acquisition of Indo Gulf Fertilizers (fertilizer business division of Grasim Industries Limited) by Indorama India Private Limited,” the fair trade regulator said in a tweet.
IIPL is principally engaged in manufacture, trading and sale of fertilisers, primarily, phosphatic fertilisers and speciality plant nutrients.
GIL is engaged in production of viscose staple fibre, chloralkali, fertiliser (through Target Business), textiles and insulators. It is also engaged in producing cement and providing financial services through its subsidiaries.
The target business, Indo Gulf Fertilizers is principally engaged in manufacture, trade and sale of urea, customised fertilisers, agri-inputs, crop protection, plant and soil health products and speciality fertilisers, the release added.
As MRC informed earlier, Indorama Ventures Sines, a subsidiary of Indorama Ventures Company Ltd (IVL), halted production at its purified terephthalic acid (PTA) plant in Sines (Sines, Portugal) in mid-November, 2020, to conduct a scheduled maintenance. The turnaround at this plant with the capacity of 700,000 tonnes/year of PTA continued for one month. Thus, the PTA plant was to return back to operations in mid-December, 2020.
PTA is on of the main feedstocks for the production of polyethylene terephthalate (PET).
According to MRC's ScanPlast report, Russia's overall estimated PET consumption totalled 71,830 tonnes in December 2020, up by 8% year on year. PET consumption in all sectors (injection moulding, fibers/filaments, films) exceeded the level of 2019 by 17% and amounted to 717,310 tonnes.
Indorama Ventures Public Company Limited, listed in Thailand (Bloomberg ticker IVL.TB), is one of the world’s leading petrochemicals producers, with a global manufacturing footprint across Africa, Asia Pacific, Europe and Americas. The company’s portfolio comprises Integrated PET, Olefins, Fibers, Packaging and Specialty Chemicals. Indorama Ventures products serve major FMCG and automotive sectors, i.e. beverages, hygiene, personal care, tire and safety segments. Indorama Ventures has approx. 24,000 employees worldwide and consolidated revenue of US$ 11.4 billion in 2019. The Company is listed in the Dow Jones Emerging Markets and World Sustainability Indices (DJSI).