The Competition Commission of India (CCI) approved Sapphire Foods India Limited's proposed merger into Devyani International Limited, but the companies' latest filings do not report that the transaction has closed.
At an Oct. 30 meeting, the regulator approved the combination under Section 31(1) of the Competition Act, 2002. Devyani and Sapphire notified stock exchanges on Oct. 31. Both filings continued to describe the scheme as proposed and said the detailed CCI order was awaited.
That decision marks a competition review milestone, while the transaction's completion has not been reported. Devyani's Jan. 1 scheme announcement lists approvals from stock exchanges, the CCI, the National Company Law Tribunal (NCLT), shareholders and creditors. The Oct. 31 filings confirm the competition clearance but do not establish the status or timetable for the other approvals. They also give no completion date.
The companies filed their joint application with the CCI on Sept. 10, according to the Oct. 31 disclosures. They announced the merger plan Jan. 1, and Devyani's board approved an amended scheme Aug. 26. Under the proposal, Sapphire would merge into Devyani, which would be the surviving company.
The proposed exchange ratio is 177 Devyani shares for every 100 Sapphire shares. Devyani forecast annual synergies of INR 210 crore to INR 225 crore from the second full year of combined operations. That figure is the company's estimate, not a result already achieved.
Under the proposed transaction, Devyani would take over the operation of 19 KFC restaurants in Hyderabad from Yum! India. Devyani's Jan. 1 announcement said the deal includes payments to Yum! India tied to merger approval, as well as an additional territory license fee. The company presented scale, a unified technology platform and stronger supply-chain capabilities as potential benefits.
EconoTimes previously covered the regulator's decision in its report on CCI approval for the merger. In their Oct. 31 filings, the companies said they were awaiting the detailed order but gave no date for its release or for merger completion.
