Reckitt Benckiser will kick off internal restructuring after getting the necessary regulatory clearances.
The company's internal restructuring has also been approved by Punjab and Haryana High Court.
The Competition Commission of India, in its order, had given its nod for the combination consisting of a reverse merger of Reckitt Benckiser Investments India Ltd into Paras Pharmaceuticals and the de-merger of the personal care business of Paras Pharma into another Reckitt subsidiary Halite Personal Care.
Reckitt had agreed to sell a part of the personal care business of Paras Pharma to Marico including Set Wet and Livon brands among others. Marico will acquire this business from Halite.
Sale of Paras Pharma's personal business to Marico has been pending regulatory clearance.
Personal care biz
Reckitt had sold a part of the personal care business of Paras Pharma to Marico. These include brands Set Wet and Livon among others. The transaction involved demerging the personal care business of Paras Pharma into a separate company, Halite Personal Care India, in which Marico was to acquire 100 per cent stake.
“Selling off the personal care business and retaining Paras Pharmaceuticals was a strategic move as we are increasingly going to focus on health and hygiene,” Mr Chander Mohan Sethi, Senior Vice President - South East Asia, Reckitt Benckiser, had said recently.
The British parent company is estimating a one-off cost of £75 million this year to implement the new restructuring strategy.
These costs are for implementing the new focus on developing markets and health and hygiene segments, and making some supply chain and manufacturing enhancements.
Dhall Law Chamber had represented Reckitt in CCI. “It was a challenge to navigate through the jurisdiction issues which arose in this case which led to a detailed analysis of the personal care market in India,” said Mr Vinod Dhall, Chairman, Dhall Law Chambers.