Haldiram turns a hotbed for billion-dollar bidding war: Report

Blackstone, Temasek, Bain eye a big bite of Indians snack-maker Haldiram

Haldiram seems to have turned hottest at 87 with the unleashing of a fierce battle over ownership of the snacks giant.

Bain Capital, along with Singapore's Temasek, is pitting against a consortium led by Blackstone in a bid to grab a controlling stake in Haldiram Snacks Food Pvt Ltd. If successful, this could mark the largest private equity acquisition in India's history, according to an Economic Times report.

Last week, Bain and Temasek made a non-binding offer, valuing Haldiram at a whopping $8-8.5 billion. This reflects the company's dominant position in India's snack and convenience foods market. Initially, both parties engaged separately with Haldiram's founding family before joining the forces.

Also Read: PE trio Blackstone, Temasek Holdings, Bain Capital aim for a slice of Haldiram Snacks: Report

On the other side, Blackstone, partnering with the Abu Dhabi Investment Authority (ADIA) and Singapore's sovereign wealth fund GIC, aims to acquire up to 76 percent in Haldiram. Bain's limited partners include ADIA and GIC, indicating a complex web of relationships in the global investment landscape.

Over the past months, Bain has been in discussions with the Agarwal family, which runs Haldiram. While the talks initially revolved around a minority investment, the family's interest in offloading a majority stake emerged as they finalised a restructuring plan. This plan involves merging the snacks business and separating the restaurant chain, which the family intends to retain.

Both sets of suitors aim to seal the deal alongside the National Company Law Tribunal (NCLT)-approved merger within the next few months. The Competition Commission of India (CCI) has given its nod to the merger plan.

This bidding war also marks the first collaboration between Bain and Temasek in India. The involvement of professionals like Haldiram's chief executive KK Chutani, formerly of Dabur International, signals a shift towards professional management within the company.

While the submission of bids is a significant step, negotiations may face hurdles due to the Agarwal family's high valuation expectations. However, with billions at stake and global giants vying for control, the outcome of this battle will undoubtedly reshape India's snacking landscape.

Also Read: Blackstone, Abu Dhabi Investment, GIC submit bid to buy into Haldiram Snacks Food: Report