HUL seeks CCI nod for acquisition of Minimalist

Hindustan Unilever Ltd (HUL) has sought approval from the Competition Commission of India (CCI) to acquire a 90.5% stake in Uprising Science Pvt Ltd, the parent company behind the beauty and personal care brand Minimalist. The acquisition also includes plans for HUL to purchase the remaining 9.5% of Uprising Science within two years, once the transaction is completed.

The acquisition, valued at Rs 2,670 crore based on a pre-money enterprise valuation of Rs 2,955 crore, was confirmed by HUL after executing a share purchase and subscription agreement with Uprising Science. Additionally, HUL will infuse Rs 45 crore as part of the deal.

The transaction has been notified to the CCI under Section 6(2) and Section 5(a) of the Competition Act, 2002, which require entities to inform the regulator before finalizing any acquisition or merger that meets the prescribed thresholds. Section 6(2) mandates notification of the deal, while Section 5(a) addresses mergers or acquisitions of enterprises that exceed certain market size requirements.

HUL has argued that the proposed acquisition will not disrupt market competition, noting that both companies operate in similar spaces. Despite the overlap, HUL believes the deal will not significantly affect competitive dynamics. The companies have identified potential synergies, including opportunities in the distribution of beauty and personal care products via salons across India.

The CCI will now review the proposed acquisition to assess its impact on competition and ensure the deal does not harm consumer interests. The approval from the regulatory body is required before the acquisition can proceed.

This move by HUL strengthens its position in the beauty and personal care market and follows a larger trend of strategic acquisitions within the FMCG sector as HUL already have an extensive portfolio of brands like Lux and Lakme.