AGI Greenpac’s acquisition of fellow Indian glassmaker HNG moved a step closer after a challenge was dismissed.
The Independent Sugar Corporation Limited (INSCO)’s challenge against the Competition Commission of India's (CCI) approval of AGI Greenpac's takeover of HNG was dismissed last week by a tribunal.
The judgement made by the National Company Law Appellate Tribunal (NCLAT) clears the path for faster resolution of the acquisition.
AGI Greenpac's takeover of HNG was approved in March this year by India’s CCI, which led to the challenge from INSCO.
AGI had emerged as the highest bidder in September 2022 under a bidding process run by Resolution Professional and Committee of Creditors led by the State Bank of India.
INSCO lost the bidding process to AGI Greenpac and AGI Greenpac’s resolution plan was approved by 98% of the Committee of Creditors in October 2022.
The proposed acquisition of HNG by AGI Greenpac is expected to maintain the supply chain of liquor, beer, food and pharmaceutical sectors which require regular supplies of container glass bottles.
The glass manufacturing furnaces of HNG have not been maintained for a long time and some of the furnaces have leaked leading to uncertainties of supplies to major liquor, food, and pharma sector.
AGI plans to make substantial investments to refurbish HNG’s furnaces and is expected to maintain the livelihood of all direct and indirect labour involved with its business.