Wadia group buying Danone’s stake to get complete control over Britannia
After finalizing a $200 million buyout transaction with French bigwig Groupe Danone - for its equal stake in biscuit major Britannia – the Wadia group will get complete control over Britannia Industries. Danone will sell its complete 25.48 percent stake to Leila Lands, a Wadia group firm which indirectly holds a similar stake in the biscuit company.
The takeover of the biscuit joint venture company, Britannia Industries, by Wadia will bring to an end the rancorous three-year scuffle between Wadia group and Danone, as the deal will mark the complete exit of the French foods’ company.
The takeover move by Wadia comes at a fitting time for Danone, which has already sold its overseas biscuit business to Kraft Foods and wants to focus on its chief businesses of water and dairy in India.
In its Monday report to the stock exchange about the acquisition of Danone’s equal stake in Britannia, Leila Lands - a 100% subsidiary of Wadia group company Bombay Burmah Trading Company – said that the transaction will be finalized on April 14.
Talking about the “inter-se transfer” of stake, a Wadia group spokesperson said: “Leila Lands has sent a notice to the stock exchange, that is required according to the law and Sebi rules for the group to acquire Danone’s shares.”