Shares of FMCG major Hindustan Unilever (HUL) will be in focus on Tuesday after the Competition Commission of India (CCI) approved the company’s proposal to acquire Uprising Science, the parent company of beauty and personal care brand Minimalist, on Monday.
Jaipur-based Uprising Science specializes in manufacturing and selling beauty, personal care, baby care, and hair care products under the ‘Minimalist’ brand.
According to the CCI release, the deal involves Hindustan Unilever acquiring 90.5% of Uprising Science’s shares, with plans to acquire the remaining 9.5% within two years, as per the terms of the share purchase and subscription agreement signed between HUL and Uprising Science.
HUL, a leading player in the FMCG sector, owns over 50 brands, including Lakme, Lux, Knorr, Kwality Wall’s, and Surf Excel.
On January 23, HUL announced its plan to acquire a 90.5% stake in Minimalist for Rs 2,955 crore, through a combination of secondary buyouts and primary infusion. The deal also includes a primary infusion of Rs 45 crore and plans for the eventual acquisition of the remaining 9.5% stake. As part of the agreement, the Minimalist team, led by Rahul and Mohit Yadav, will continue to manage the business for the next two years.
Shares of HUL fell 6.72% and underperformed its sector by 3.36% in the past year. Meanwhile, they have offered 3.29% returns in the last three years. According to Trendlyne, Hindustan Unilever has worse one year returns than Nifty50, Sensex, sector and industry.
