Tata Group's majority stake acquisition in Bisleri halted over valuation: Report
Mumbai: Tata Group’s attempt to buy a majority stake in Bisleri, one of India’s largest bottled water enterprises, hit a roadblock after the two parties failed to reach a consensus on valuation, Bloomberg reported.
Tata Group was in advanced talks to acquire Bisleri and they were in the process of finalizing the transaction's structure. The owners of Bisleri intended to raise around $1 billion from the deal. However, the negotiations encountered a hurdle when the companies failed to come to an agreement on the valuation, Bloomberg reported citing sources, who requested anonymity.
The talks may resume in the future and chances of other interested buyers coming up with purchase proposals is also likely, the sources said, the report added.
According to the Bisleri website, the company's origins can be traced back to 1949 when Shri Jayantilal Chauhan established Parle Group, a soft drinks manufacturer. In 1969, Parle Group bought Bisleri from an Italian entrepreneur.
The company has a 60% share in India’s bottled mineral water market, according to the site.
With Bisleri’s acquisition, the salt-to-software conglomerate would have diversified its range of bottled water brands in India. Tata Consumer Products Ltd., one of the conglomerate's publicly traded arms, currently owns the Himalayan Natural Mineral Water and Tata Water Plus labels.