Competition Commission of India has approved the combination of Reckitt Benckiser Investments India Ltd (RBIIPL) with Paras Pharmaceuticals and Halite Personal Care.
The nod comes in the wake of merger of consumer goods major Reckitt Benckiser India with Paras Pharmaceuticals and also the demerger of personal care division of Paras Pharmaceuticals from Halite Personal Care.
RBIIPL, a wholly-owned subsidiary of Reckitt Benckiser Singapore, holds shares in Paras Pharmaceutical as a holding company and does not have any other business activity.
Paras is engaged in the business of selling of pharmaceuticals, personal care and other allied products.
Halite is a wholly-owned subsidiary of RB Singapore. Although it has been incorporated under the Companies Act, it has not commenced business till date.
The personal care business of Paras Pharmaceutical is proposed to be transferred to Halite Personal Care.
Reckitt to control
Reckitt Benckiser Group will remain the ultimate holding company of RB Singapore, Reckitt Benckiser Investments India, Paras Pharmaceuticals and Halite Personal Care.
The commission said that control over the activities carried on by the parties to the combination before and after the proposed combination would remain with RB Group and the combination is not likely to give rise to any competition in India.
Reckitt Benckiser acquired Paras Pharmaceuticals including over-the-counter brands such as Moov pain relief ointment, Krack heel care lotion and D'Cold cold in December 2010 for Rs 3,260 crore.
Earlier this year, it 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.
It also involved transfer of all key assets, including intellectual property rights, supply agreements and third-party manufacturing agreements. The company, which has popular brands such as Dettol and Vanish under its umbrella, has on several occasion acknowledged India as its key growth markets.