Madrid-based rice and pasta manufacturer Ebro Foods S.A. is sealing a deal to acquire Olam International Ltd-owned Indian firm Taraori Rice Mills Pvt Ltd for $14.5 million (Rs 78 crore). Taraori is the holding company for Olam’s rice milling assets in India.
The deal, which was disclosed last month, has now got the nod of the Indian competition watchdog CCI (Competition Commission of India), according to a PTI report.
Ebro Foods is in packaging and marketing of packaged foods & products including rice, pasta and sauces.
“Through this sale, we are monetising more than the book value of fixed investments, as well as releasing working capital, which will be used to reinforce our core supply chain and trading business in non-basmati rice for our conventional markets,” Rajeev Raina, global head of Olam’s rice business, said in a previous statement.
The basmati rice mill is located in Haryana and has a processing capacity of 18 tonnes of paddy per hour. Olam Agro India and one of its subsidiaries hold 50 per cent stake each in the company.
Singapore-headquartered agri products major Olam International is engaged in the business of cashew, spices & vegetable dehydrates, cocoa, coffee, rice, cotton and wood products.
In 2011, Olam acquired the bulk spices and private label assets and businesses of Vallabhdas Kanji Ltd for $18 million and sugar manufacturing company Hemarus Industries Ltd for $73.80 million.
(Edited by Sanghamitra Mandal)