Date: June 25, 2024
Press Release No. 27 of 2024-25
The Commission has given the green light to the acquisition of certain equity shares in Sneha Farms Private Limited by Mitsui & Co., Ltd. This strategic transaction involves a mix of primary subscription and secondary purchase of shares, marking a significant development in the agricultural and trading sectors.
Transaction Details
The proposed combination involves Mitsui & Co., Ltd., a globally diversified general trading company, acquiring equity shares of Sneha Farms through both primary subscription and secondary purchase. This acquisition aligns with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, ensuring a transparent and regulated transaction process.
About Mitsui & Co., Ltd.
Mitsui & Co., Ltd. is a renowned general trading company with an extensive and diversified business portfolio. It operates across 61 countries and regions, with its equity shares listed on the Tokyo Stock Exchange. Mitsui is engaged in a wide array of business areas, including mineral and metal resources, energy, infrastructure projects, mobility, chemicals, iron & steel products, food and retail management, wellness, IT and communication, and corporate development. This acquisition signifies Mitsui's strategic intent to expand its footprint in the agricultural sector, particularly within the poultry industry in India.
About Sneha Farms Private Limited
Established in 1994, Sneha Farms Private Limited is a leading player in the Indian poultry industry. The company operates through its subsidiaries, Sneha Gold Proteins Private Limited and Singh Poultry Private Limited. Sneha Farms engages in a comprehensive range of activities, including poultry breeding, hatchery maintenance, manufacturing of poultry feed and pre-mixes, processing of frozen and chilled chicken, and production of ready-to-cook and ready-to-eat poultry products. Additionally, the company produces fish feed and pet food, showcasing its diverse capabilities in the food production sector.
Implications of the Acquisition
The acquisition of Sneha Farms by Mitsui is poised to bring significant synergies and operational efficiencies to both entities. Mitsui’s extensive global network and diversified business operations will complement Sneha Farms’ deep expertise in the poultry industry. This strategic alignment is expected to drive innovation, enhance product offerings, and improve market competitiveness. The combined resources and expertise will likely lead to improved service delivery and expanded market reach, benefiting stakeholders and consumers alike.
Commission's Decision
The Commission's approval is a pivotal step in finalizing this acquisition. A detailed order outlining the specific terms and conditions of the transaction will be issued by the Commission soon. Stakeholders are encouraged to stay informed as the detailed order will provide further insights into the regulatory aspects of the acquisition.
Conclusion
The Commission's approval of Mitsui & Co., Ltd.'s acquisition of equity shares in Sneha Farms Private Limited represents a significant milestone in the agricultural and trading sectors. This strategic transaction is expected to foster growth, drive innovation, and enhance operational efficiencies within the poultry industry. As the transaction progresses, stakeholders can anticipate a more dynamic and competitive market landscape.
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