Private equity (PE) group, Blackstone, has notified the Competition Commission of India (CCI) of its proposed acquisition of Piramal Glass Pvt Ltd (PGPL) and its subsidiaries, on Monday.
ET had previously reported that the global PE firm had submitted a binding offer in October, valuing the Ajay Piramal-owned glass manufacturing and sales business at about Rs 6,200 crore.
Blackstone will undertake the transaction through PGP Glass Pvt Ltd, a firm set up for the purpose of the acquisition and affiliated to BCP Topco Pvt Ltd, which is, in turn, an affiliate of funds managed by the affiliates of Blackstone, the filing said.
The transaction will involve the acquisition of PGPL along with certain shareholding in its subsidiaries including Ansa Deco, Kosamba Glass, Piramal Glass UK, Piramal Glass Europe, Piramal Glass Ceylon and Piramal Glass – USA.
Beyond these, the PE group will also acquire certain shareholding in Vivid Glass Trading and the filming division of Ansapack Pvt Ltd, as per the filing.
Vivid Trading is a company incorporated and registered in the Dubai Airport Free Zone Authority, engaged in glass bottle trading and counts PGPL as its supplier while Ansapack is an Indian firm engaged in the manufacture and sale of packaging material, including corrugated boxes and plastic films.
ET had first reported in July that Piramal had decided to disinvest its glass business in order to take advantage of increasing pharmaceutical sales amid the pandemic.
PGPL is the largest speciality glass packaging company in Asia and caters to three key industries – pharmaceuticals, cosmetics and perfumery and food and beverages.
When it goes through, the transaction will mark another disinvestment by the Piramal group, which is looking to firm up the capital base of its real estate, pharmaceutical and financial services businesses through stake sales in non-core businesses.
According to the notice filed with the CCI, the relevant markets have been defined as the market for manufacture and sale of packaging in India and the market for manufacture and sale of glass packaging in India.
