Temasek Seeks CCI Nod For 10% Stake In Haldiram Snacks Food At $10 Billion Valuation
Temasek stated that the transaction involves the acquisition of shares and voting rights, falling under Section 5 of the Competition Act, 2002, in a notice filed with the CCI on March 20.
Singapore's sovereign wealth fund, Temasek Holdings, has approached the Competition Commission of India for approval to acquire around a 10% stake in Haldiram Snacks Food Pvt. Ltd., India's largest packaged snacks and sweets maker. The investment will be made through Jongsong Investments Pte, a Temasek subsidiary.
The fund stated that the transaction involves the acquisition of shares and voting rights, falling under Section 5 of the Competition Act, 2002, in a notice filed with the CCI on March 20.
"The proposed transaction entails the acquisition of less than 10% of the issued and paid-up equity share capital of the target," the filing said.
Despite potential scrutiny from the competition watchdog, both Jongsong Investments and Haldiram Snacks Food asserted that the deal does not pose any competition law concerns, regardless of how the market is defined. However, to aid CCI's assessment, they outlined potential market segments, including packaged food products, snacks, sweets, ready-to-eat foods, dairy, bakery, chocolates, and non-carbonated beverages.
According to industry sources, Temasek's stake acquisition pegs Haldiram Snacks Food at a valuation of $10 billion. The Agarwal family, which controls the company, is reportedly exploring the possibility of bringing in another investor to offload additional equity.
Haldiram Snacks Food, which recorded a revenue of over Rs 12,500 crore in fiscal 2024, has been in talks with multiple private equity firms, including Blackstone, Alpha Wave Global, and Bain Capital-led consortiums. However, after months of negotiations, the promoters opted for a minority stake sale rather than a larger divestment.
This fresh capital infusion is expected to fuel Haldiram's expansion in both domestic and international markets. The company could also consider an initial public offering next year, reported PTI.
Haldiram Snacks Food was formed through the merger of two family-run businesses—Haldiram Snacks (Delhi) and Haldiram Foods International (Nagpur). The National Company Law Tribunal has already cleared the merger, with other regulatory approvals pending.
(With inputs from PTI.)
