On October 24, 2019, CCI approved the acquisition of 100% of the total issued and paid-up equity share capital of Kwality Limited (‘Kwality’) (which is undergoing insolvency resolution proceedings under the Insolvency and Bankruptcy Code, 2016) by (i) Haldiram Snacks Private Limited (‘Haldiram’) and (ii) Pioneer Securities Private Limited (‘Pioneer’) (together, ‘Parties’).[1]

While Kwality is engaged in processing and selling milk and related dairy products in India, Haldiram is engaged in the business of manufacturing and marketing of a variety of snacks and Pioneer renders services pertaining to stock and non-banking financial services. Accordingly, CCI noted there were no horizontal overlaps among the Parties. As to vertical overlaps, CCI noted that Haldiram procures ghee (a dairy product) from Kwality. However, the total quantity of the ghee purchased from Kwality in the previous financial year was less than 5% of the total value and volume of ghee purchased. Accordingly, CCI noted that the transaction is not likely to result in any competitive foreclosure.

[1] Combination Registration No. C-2019/10/693.