India’s Wadia Group is looking to raise funds internationally to finance the acquisition of estranged partner Danone’s stake in local biscuit maker Britannia Industries.
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Danone and the Wadias own equal shares in Associated Biscuits International Holdings, which owns 51% in Britannia.
However, the Wadias and Danone are expected to sign an agreement that will give control of Britannia to the Indian group following months of speculation over the future of the business.
The relationship between Danone and the Wadias has been strained since the latter started legal action claiming the French food giant illegally used the intellectual property rights of Britannia’s Tiger brand.
Wadia subsidiary Bombay Burmah Trading Corporation Ltd (BBCTL) is looking to raise funds to buy the Danone stake.
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By GlobalDataAshok Panjwani, MD of BBCTL, told just-food that talks to raise the finance for a possible deal were ongoing.
“We are in negotiations with international banks, nothing is final yet, so nothing can be said right now, but we are interested in increasing our ownership in Britannia,” Panjwani said.
Danone’s 25.5% share of Britannia has been valued at around US$250m.
