ITC Initiates $1.4B Bid for MTR Foods and Eastern Condiments
Deal News | Feb 14, 2025 | EIN
India's largest conglomerate, ITC Ltd., is reportedly in discussions to acquire Norway-based Orkla ASA's Indian arms, MTR Foods Pvt. Ltd and Eastern Condiments Pvt. Ltd, for $1.4 billion. This acquisition aligns with ITC’s strategy to enhance its standing in the FMCG sector, particularly in Southern India, which is a stronghold of both MTR and Eastern Condiments. Orkla, which had considered an IPO for these businesses, is open to selling a majority stake if the valuation is favorable. The move could significantly bolster ITC's product offerings in spices, ready-to-cook, and packaged foods. However, challenges such as valuation negotiations, regulatory approvals, and integration of these companies remain pivotal before the acquisition can be finalized.
Sectors
- Fast-Moving Consumer Goods (FMCG)
- Mergers and Acquisitions (M&A)
Geography
- India – The target companies, MTR Foods and Eastern Condiments, are based in India, and ITC's expansion strategy is focused on the Indian market.
- Norway – Orkla ASA, the parent company looking to divest its Indian operations, is based in Norway.
Industry
- Fast-Moving Consumer Goods (FMCG) – The article focuses on ITC's strategy to expand its FMCG portfolio through an acquisition in the processed foods and spices markets.
- Mergers and Acquisitions (M&A) – The article discusses a potential acquisition deal between ITC and Orkla for MTR Foods and Eastern Condiments.
Financials
- $1.4 billion – The reported acquisition price for MTR Foods and Eastern Condiments by ITC from Orkla.
- Rs 2,400 crore – Revenue generated by Orkla's Indian operations for FY24.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| ITC Ltd | Bidding Company | Company | India's largest conglomerate, looking to acquire MTR Foods and Eastern Condiments. |
| Orkla ASA | Selling Company | Company | Norway-based consumer goods company considering selling its Indian businesses. |
| MTR Foods Pvt. Ltd | Target Company | Company | Part of Orkla's Indian operations, a well-known brand in ready-to-eat and spice products. |
| Eastern Condiments Pvt. Ltd | Target Company | Company | A leading brand in the spices and masalas market in India, also owned by Orkla. |
| Sanjiv Puri | Chairman and Managing Director | Person | The top executive of ITC Ltd, involved in strategic decisions like the acquisition. |