AGI Greenpac's bid to acquire fellow Indian glassmaker Hindusthan National Glass and Industries (HNG) has been rejected by a court.
India's Supreme Court rejected the proposal despite recent conditional approval from the Competition Commission of India (CCI).
The court said AGI Greenpac had violated the Insolvency and Bankruptcy Code by securing approval from a committee of creditors before obtaining CCI clearance.
This led the Supreme Court to declare the bid invalid.
HNG, one of India's oldest container glass manufacturers, has been undergoing corporate insolvency since 2021.
Both AGI Greenpac and Independent Sugar Corporation (INSCO) - a sister company of Tanzania's Kioo Glass - had bid for its acquisition.
While INSCO secured CCI approval in September 2022, AGI’s plan was accepted by creditors in October 2022, despite lacking regulatory clearance.
This prompted INSCO to challenge the decision, ultimately leading to the Supreme Court’s verdict.
INSCO is owned by the Madhvani Group of Companies based in East Africa.
AGI Greenpac said: "The company is currently evaluating the judgment and the next steps in relation thereto, in consultation with our legal advisors."
