Tata Group, one of India’s largest conglomerates, has been in talks to acquire a majority stake in Bisleri International Pvt, one of India’s leading bottled water companies. Sources are saying that negotiations have stopped due to a disagreement on the value of the deal. Reportedly, Bisleri’s owners were trying to acquire about $1 billion and were close to establishing the terms for the agreement. Unfortunately, the negotiations between Tata and Bisleri were unsuccessful due to the two companies’ inability to reach a consensus about the company’s value. Nevertheless, talks may resume between them or other potential buyers may show interest in acquiring Bisleri.
Bisleri has been in the bottled water business for over 50 years, and it is a well-known name in India with a 60% hold on the country’s mineral water market. It was acquired by Parle Group back in 1969, and they also produce hand sanitizers. Bisleri Chairman Ramesh Chauhan had confirmed in a television interview last November that the company was in talks to sell a stake to Tata.
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Tata Group’s acquisition of Bisleri would grant it a greater presence in India’s bottled water market. Currently, Tata Consumer Products Ltd (a listed unit) acts as the parent company for Himalayan Natural Mineral Water and Tata Water Plus brands. Acquiring Bisleri would add to the conglomerate’s market share in India’s highly competitive bottled water industry.
However, disagreements over the valuation of the company have put the acquisition talks on hold. The situation highlights the challenges of mergers and acquisitions in India, where valuations can often be a stumbling block. Despite the current impasse, Tata and Bisleri may still resume discussions, and other potential suitors may also emerge. The deal, if it goes through, could have a significant impact on the Indian bottled water industry and the broader consumer goods sector.
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