The Competition Commission of India (CCI) has given its nod for IMCD India Private Limited to acquire the remaining 30% equity stake in Signet Excipients Private Limited. This approval comes as a result of the exercise of a call option by the Acquirer, signaling a significant development in the business landscape within the Indian specialty chemicals market.
IMCD India Private Limited, an indirect wholly owned subsidiary of IMCD N.V., operates from Mumbai, India, and specializes in the sales, marketing, and distribution of a wide array of specialty chemicals. These include food and pharma ingredients across multiple segments such as pharmaceutical excipients, food and nutrition ingredients, coatings and construction chemicals, advanced materials like plastic additives and composites, lubricants and fuel chemicals, textile chemicals and additives, as well as beauty and personal care ingredients.
The Target, Signet Excipients Private Limited, is jointly controlled by IMCD and its promoters. At present, the Acquirer and the Promoters collectively hold 70% and 30% of the equity share capital of the Target, respectively. While Signet Excipients primarily operates within India, with minimal sales via exports in the Indian subcontinent and Africa, it specializes in the sales, marketing, distribution, import, and export of excipients utilized in pharmaceuticals, nutraceuticals, biotech, food, API products, and related pharmaceutical formulations.
The approval granted by the CCI marks an essential step in the completion of this acquisition, with a detailed order from the Commission anticipated to follow. This move is poised to bring about notable changes within the sector, consolidating the market position of IMCD India and potentially impacting the landscape of specialty chemicals distribution in India.