PepsiCo India's bottling partner Varun Beverages Ltd (VBL) on Monday said it has received Competition Commission of India (CCI) approval for the proposed acquisition of franchise rights in South and West regions from PepsiCo India. The company, however, did not disclose financial details of the proposed acquisitions.
"The Competition Commission of India (CCI), in its meeting held on March 22, considered and approved the above-mentioned proposed acquisition under sub section (1) of Section 31 of the Competition Act, 2002," VBL said in a filing to the Bombay Stock Exchange.
Following the completion of these acquisitions, Varun Beverages will be a franchise of PepsiCo beverages business across 27 states and seven Union Territories (UTs).
On February 18, the board of directors of the company had approved its intent to enter into a binding agreement with PepsiCo to acquire franchise rights in South and West regions from PepsiCo for a national bottling, sales and distribution footprint in 7 states and 5 Union Territories.
Earlier this month, the company commenced trial production at its Green field facility in Punjab for Tropicana juices, dairy based products, carbonated beverages and Aquafina wafer. Spread over 41 acres in Pathankot district of Punjab, it will be the first fully backward integrated facility in India to manufacture the complete range of above products at a single location, the company had said.
Following the announcement, shares of company were trading at Rs 799.35 apiece, down 1.25 per cent, against previous close level of 809.45 on the BSE. In the volatile trade so far, it touched an intra-day high and low of Rs 819.75 and Rs 790.10, respectively.
Edited by Chitranjan Kumar