AGI Greenpac Seeks Review of Supreme Court Ruling on HNGIL Acquisition

In a significant legal development, AGI Greenpac has filed a petition seeking the Supreme Court's review of its January decision which nullified AGI's resolution plan to acquire the insolvent Hindusthan National Glass & Industries Ltd (HNGIL). The court's decision was based on AGI's failure to obtain prior approval from the Competition Commission of India (CCI). HNGIL, a major player in India's glass packaging industry, filed for insolvency in October 2021. AGI's proposed acquisition was valued at approximately ₹2,200 crore and aimed to merge their substantial market shares in the glass packaging industry. The plan, however, faced hurdles due to competition concerns, potentially resulting in an 80-85% market share in the F&B sector and 45-50% in alcoholic beverages. Despite securing conditional CCI approval after submitting a divestment plan, the Supreme Court deemed the acquisition unsustainable without the prior CCI clearance. The case highlights ongoing legal debates over the necessary sequence of approvals in insolvency resolutions.