CCI Nod To Brookfield's Stake Buy In Jindal Poly Films Under Green Route
The transaction will result in JPFL carving out the packaging films business into a wholly-owned subsidiary.
The Competition Commission of India on Monday approved purchase of stake in JPFL Films Pvt. Ltd. by U.A.E.-based Project Holdings Fourteen Ltd. -- an affiliate of Brookfield Asset Management-- under a green channel route.
Under the green channel route, a deal which does not raise any risk of an appreciable adverse effect on market competition is deemed to be approved on it being intimated to the competition watchdog.
In a release on Monday, Competition Commission of India said it has approved the proposed deal.
In March, JPFL signed a pact with Brookfield Asset Management to sell a 25% stake in its packaging films business that will be hived off as a separate unit as part of the Rs 2,000-crore transaction.
The transaction will result in JPFL carving out the packaging films business into a wholly-owned subsidiary, in which Brookfield will hold a minority stake.
The proposed investment, which values the hived-off entity at Rs 8,000 crore, will be carried out through Brookfield's Special Investments programme and with its institutional partners Brookfield and Jindal Poly Films.
"Given that there are no horizontal overlaps, vertical relationships, or complementary businesses between acquirer/acquirer's group and target in India, the proposed transaction does not raise any risk of an appreciable adverse effect on competition in India and is being notified under the green channel route," CCI said.
Jindal Poly Films Ltd. produces metallised and coated films as well as tear tape, stamping foil, security thread and other high-value products.
Jindal Films India Ltd. is a leading manufacturer of flexible plastic films for the packaging industry and non-woven fabrics products.