Roquette Frères Seeks CCI Approval for IFF Pharma Solutions Acquisition
CCI Approval Requested
Roquette Frères, a French company specializing in plant-based ingredients, has requested approval from the Competition Commission of India (CCI), India's fair trade regulator, for its acquisition of the pharma solutions business and specific product lines from International Flavors & Fragrances Inc (IFF). Roquette operates in India through subsidiaries such as Crest Cellulose and Roquette India.
Acquisition Details
The acquisition involves Roquette purchasing equity interests in certain IFF entities, including IFF’s pharma solutions segment and parts of its Nourish business. The aim is to align customers, businesses, and manufacturing operations. IFF’s presence in India is through Danisco Nutrition and Biosciences India.
Limited Market Overlap
Roquette's submission to the CCI indicates a limited overlap in India regarding the supply of microcrystalline cellulose (MCC) and croscarmellose sodium (CCS), which are essential for pharmaceutical applications. A potential vertical link exists due to IFF's upstream activities in hydroxypropyl methylcellulose (HPMC) and Roquette's downstream operations in HPMC-based capsules.
Competitive Landscape
Roquette asserts that the acquisition will not raise competition concerns due to the minimal market overlap and strong competitive constraints. The company believes that defining specific product and geographic markets is not necessary for assessing the competition impacts.
Strategic Acquisition
In March 2024, IFF announced a definitive agreement to sell its Pharma Solutions unit to Roquette for up to USD 2.85 billion. This unit has 10 research and development or production sites globally, generating about USD 1 billion in revenue in 2023. The acquisition is aimed at strengthening Roquette’s global position in pharmaceutical excipients and ingredients, including in India. Regulatory approval is needed to finalize this strategic move, which seeks to enhance Roquette’s market presence worldwide.
Roquette’s acquisition strategy reflects its commitment to expanding its footprint in the pharmaceutical sector. By integrating IFF’s pharma solutions business, Roquette seeks to strengthen its capabilities and offerings in plant-based ingredients on a global scale.
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