Temasek’s Jongsong seeks CCI nod for ₹8,000 crore Haldiram stake buy deal

Singapore’s state-owned investment firm Temasek’s subsidiary Jongsong Investments Pte. Ltd (Jongsong) has sought the Competition Commission of India (CCI) nod for acquisition of about 10 per cent stake in Haldiram Snacks Food Private Limited. This move comes close on the heels of recent media reports quoting the deal value at about ₹8,000 crore, thereby valuing the entire enterprise (Haldiram Snacks) at ₹80,000 crore. 

The notice filed with the CCI by Jongsong was however silent on the deal value for the transaction. This transaction, categorised as an acquisition of shares and voting rights, falls under Sections 5(a)(i)(A) and 5(d) of the Competition Act, 2002 (as amended). Jongsong Investments operates solely as an investment holding company and is indirectly wholly owned by Temasek, whose global portfolio spans various sectors including transportation and industrials, financial services, telecommunications, consumer and real estate, life sciences and agri-food, and multi-sector funds.

Haldiram Snacks Food Pvt. Ltd., incorporated on December 12, 2022, is currently not operational but aims to manufacture and sell packaged food products across India. Its product line will include snacks, sweets, ready-to-eat products, dairy products, bakery items, chocolates, and non-carbonated ready-to-drink beverages.

The relevant market for the proposed transaction could be broadly defined as the manufacture and sale of packaged food products in India, with narrower markets including specific segments like snacks, sweets, dairy products, chocolates, and beverages. The parties involved believe the transaction does not raise any competition law concerns, regardless of how the relevant markets are defined.

The deal highlights Temasek’s continued interest in India’s thriving food and beverage sector through its investment arm, Jongsong Investments. Approval from the CCI will be a key step in formalising this acquisition, industry observers said.