Tata Consumer Products Limited (TCPL) told stock exchanges on Friday that it had halted all further negotiations with packaged drinking water brand Bisleri for a possible takeover in a deal estimated to have cost between Rs 6,000 and Rs 7,000 crore.
In a regulatory filing, the company said, “The company would like to announce that it has now closed negotiations with Bisleri regarding a possible transaction and confirm that it has not entered into any definitive agreement or binding commitment on the matter.”
The development of TCPL’s acquisition of Bisleri was first reported by the Economic Times on November 24 last year, which stated that Bisleri chairman Ramesh Chauhan, 82, had been in poor health recently and said, he had no successor to whom he could bring Bisleri for the next stage of development.
Bisleri was originally an Italian company founded by Felice Bisleri. It entered Mumbai in 1965 with its brand of packaged drinking water. Four years later, Ramesh Chauhan and his brothers bought it for Rs 4 lakh, according to market information.
It currently has 122 branches and 4,500 distributors across India and neighboring countries. In FY22 TCPL’s operating income was Rs.12,425 crore. According to media reports, Bisleri is likely to post revenue of Rs. 2,500 crore and net profit of over Rs. 200 crore in FY23.
The Tata Group’s talks for a majority stake in Bisleri International Pvt, one of India’s largest bottled water producers, have stalled over the valuation, according to Bloomberg. Tata Group was in advanced discussions to acquire control of Bisleri and the parties were working to finalize the structure of a transaction.
Bisleri’s owners were looking to raise about $1 billion from a deal, some sources told Bloomberg. However, the negotiations later hit a snag as the companies failed to agree on a valuation, the sources told the news outlet.
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