CCI approves acquisition of TCNS Clothing by Aditya Birla Fashion

The Competition Commission of India (CCI) has approved the acquisition of TCNS Clothing Co. Limited by Aditya Birla Fashion and Retail Limited (ABFRL). According to a release by the CCI, the proposed combination involves acquisition of 51 per cent of the expanded share capital of the target by the acquirer TCNS Clothing Co. Limited (target) by the Aditya Birla Fashion and Retail Limited (acquirer).

ABFRL is a listed company and is part of Aditya Birla group of companies and is engaged in retailing of branded productsABFRL is a listed company and is part of Aditya Birla group of companies and is engaged in retailing of branded productsin segments including apparel, footwear and accessories, through its retail stores, online retail platforms and e-commerce marketplaces.

TCNS Clothing too is a listed company, engaged in manufacturing, distribution and sale of women’s apparel, jewellery, footwear, and other beauty products under its brands, W, Aurelia, Wishful, Elleven and Folk Song.

The company’s list of businesses also involves wholesale cash and carry trading (including sale through franchisee outlets) of products.

Earlier in May this year, ABFRL had announced that it has entered into a definitive agreement to acquire 51 per cent stake in TCNS Clothing. The value of the promoter stake for TCNS, ABFRL had said, is Rs 1,650 crore for the 51 per cent stake.

ABFRL in May had released its fourth quarter results for FY 2022-23 and posted a loss of Rs 186.94 crore in the fiscal fourth quarter as against a profit of Rs 43.59 crore in the corresponding quarter last year.