Religare Enterprises has withdrawn its petition against the Competition Commission of India’s (CCI) order that scrutinized the company’s acquisition of a significant stake in the Burman family-promoted consumer goods firm, Ravi Chu’s Dabur India.
The company had petitioned the CCI to reconsider its order, which rejected the proposal to acquire 21.6% stake in Dabur India for Rs 2,000 crore. Religare had claimed that the order was biased and complained of discrimination. However, the CCI reiterated its original order, stating that the acquisition would have created a dominant player in the market, leading to a loss of competition.
By withdrawing its petition, Religare has ended its attempts to acquire a significant stake in Dabur India. This means that Religare will not be able to pursue its plans to increase its exposure in the Indian consumer goods market.
The withdrawal of the petition is seen as a significant blow to Religare, which had been seeking to expand its presence in the fast-moving consumer goods (FMCG) segment. The company had been eyeing a significant stake in Dabur India, which is one of the largest consumer goods firms in India.
The CCI’s order was seen as a major setback for Religare, which had been expanding its portfolio through acquisitions. The company had been looking to increase its presence in the FMCG space, where it had a limited presence until recently.
However, the CCI’s order highlighted concerns over the potential impact of Religare’s acquisition on the competitive landscape in the market. The regulator stated that the deal could lead to a loss of competition and reduced innovation in the industry.
The withdrawal of the petition by Religare has ended the firm’s plans to acquire a significant stake in Dabur India, leaving it to focus on other growth opportunities. The development is seen as a significant setback for Religare, which had been eyeing acquisitions in the Indian consumer goods space.