Competition Commission Approves UPL Group's Restructuring of Crop Protection Businesses

CCI Clears Restructuring Proposal of UPL Group Entities

The Competition Commission of India (CCI) has cleared a restructuring proposal of UPL group entities that will consolidate the company's domestic and global crop protection business. The proposed transaction involves several UPL group entities, including UPL Ltd, UPL Sustainable Agri Solutions Ltd, UPL Global Sustainable Agri Solutions Ltd, UPL Crop Protection Holdings Ltd, TPG Upswing Ltd, Platinum Jasmine A 2018 Trust, and Woodhall Holdings (DIFC) Ltd.

Under the transaction, UPL's India crop protection business, housed under UPL Sustainable Agri Solutions, and its global crop protection business, currently held under UPL Crop Protection Holdings and its subsidiaries, will be transferred to UPL Global Sustainable Agri Solutions. Following the completion of the deal, UPL Global Sustainable Agri Solutions, a wholly-owned subsidiary of UPL, will hold both the India and global crop protection businesses.

The proposed combination is a reorganisation exercise comprising a series of interconnected steps, as per the fair trade regulator. The Competition Commission of India has approved the proposed combination related to the restructuring of UPL group companies and others.

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UPL is a global agri-solutions company engaged in research, development, manufacture, and sale of pesticides, insecticides, micronutrients, crop protection products, bio-solutions, seeds, and post-harvest treatments. TPG Inc is a global investment firm, while Woodhall Holdings (DIFC) Ltd belongs to the Brookfield Group. Platinum Jasmine A 2018 Trust, an investment entity owned and controlled by the Abu Dhabi Investment Authority, is also involved in the transaction.

The CCI has also approved the acquisition of Macquarie AirFinance Ltd by Dubai Aerospace Enterprise (DAE) Ltd through DAE Eirecam Designated Activity Company. Dubai-headquartered DAE Ltd is a globally active aircraft lessor, while DAE Eirecam Designated Activity Company is a downstream holding of DAE Ltd.

Deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace.

Transaction Details

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Key Entities

• UPL: Global agri-solutions company
• Dubai Aerospace Enterprise (DAE) Ltd: Globally active aircraft lessor