CCI approves Nestlé & PAI JV

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CCI vide its order dated July 01,2016 has approved JV entered between Nestlé and PAI (through Riviera Topco) which would be jointly controlled by Nestlé and PAI (through Riviera Topco) and would be principally active in the production, distribution and sale of ice cream products in certain geographical areas and to a limited extent in the production and sale of some other frozen food products in certain European Economic Area (“EEA”) countries, as well as chilled dairy products in the Philippines,  pursuant to execution of an Implementation Agreement entered into among, inter alia , Nestle and Riviera Topco.

The following businesses would be transferred to the JV by Nestlé and PAI respectively: i. Nestlé Contributed Business: This comprises of (i) Nestlé’s ice cream business located in Europe, Middle East and North Africa (excluding Israel) and certain other geographical areas, including Argentina, Brazil, and the Philippines; (ii) some of Nestlé’s frozen food businesses in certain EEA countries; (iii) Nestlé’s chilled dairy business in the Philippines; and (iv) certain logistics services in Russia, Switzerland and Italy in relation to frozen pizza. The Nestlé Contributed Business would be transferred by Nestlé to the JV. ii. R&R Ice Cream plc (“R&R”): R&R, a subsidiary of PAI, is a public limited company headquartered in the UK, is engaged in the ice-cream business in the U.K., certain EEA countries, South Africa, and Australia. It does not have any business activity or operations in India. The entire business of R&R would be transferred by PAI to the JV.

The JV will be operational in India only through export sales of Nestlé’s ice cream brand, Mövenpick of Switzerland (“MoS”). PAI, either directly or through its portfolio companies, is not present in the ice cream market in India. Accordingly, apart from MoS export sales, the JV will not be active in India.  (Source: CCI order dated July 01, 2016)

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