Godrej Foods has pulled out of a joint venture deal with US giant Pillsbury, with an agreement made on Wednesday to sell its 43.5% holding in Godrej Pillsbury Ltd to the Pillsbury company, or its nominees.
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The company has informed the Bombay Stock Exchange (BSE) of its decision to pull out of the venture company, the remainder (56.5%) of which was controlled by the Pillsbury-owned Dutch group Selviac Nederland.
Sources from Godrej added that a distribution and selling arrangement between the companies was also terminated last November.
According to the Hindustan Times, the divestment is subject to necessary approval by the Foreign Investment Promotion Board (FIPB) and the Reserve Bank of India (RBI) among others.
