InvestorQ : Is it true that MTR Foods is getting merged with a Norwegian company?
Niti Shenoi made post

Is it true that MTR Foods is getting merged with a Norwegian company?

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ishika Banerjee answered.
2 months ago
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It is slightly different in structuring. Let me explain. Orkla, which is a packaged food company of Norway, will buy 67.8% in Eastern Condiments Pvt. Ltd and merge it with its existing MTR Foods business to create a huge ready-to-eat mix and spice franchise.

Orkla had already forayed into the Indian market in 2007 through the takeover of MTR. Now Orkla is expected to grow its dominance as the leading branded food players in India in the spice category as well as in adjacent categories.

As per the deal, MTR will pick up a 41.8% stake from the Meeran family and the entire 26% stake of McCormick Ingredients in Eastern Condiments. The balance 32.2% stake will remain with the Meeran Brothers who promoted Eastern. Subsequently, Eastern will be merged with MTR.

The deal is expected to be closed by the end of this year while the actual merger process is expected to be completed only by the first quarter of 2022. Finally, the deal will also have to be approved by the CCI. This will be the first big attempt to organize the spices market.

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