Wilmar to Acquire Majority Stake in Adani’s AWL

Wilmar International, through its subsidiary Lence Pte Ltd, has applied for approval from the Competition Commission of India (CCI) to acquire a 20% stake in AWL Agri Business Ltd from the Adani Group for Rs 7,150 crore, a move that will make the Singapore-based agribusiness giant the majority shareholder. The transaction, announced in July, is part of Adani’s strategic exit from the fast-moving consumer goods (FMCG) sector to focus on its core infrastructure businesses, such as energy, utilities, and logistics.

The deal involves Lence Pte acquiring between 11% and 20% of AWL Agri Business’s paid-up equity share capital at Rs 275 per share. Wilmar currently holds a 43.94% stake, and post-transaction, its ownership will rise to between 54.94% and 63.94%, securing control of the company known for its Fortune brand of edible oils and food products. The parties assert that the increased shareholding will not raise competition concerns, as notified under Section 5(a) of the Competition Act, 2002.

Adani Commodities LLP (ACL), a subsidiary of Adani Enterprises, plans to sell its remaining 10.42% stake to pre-identified investors, completing its exit from AWL Agri Business. This follows a January 2025 sale of a 13.51% stake for Rs 4,855 crore, bringing Adani’s total expected proceeds from divesting its 44% stake to over Rs 15,700 crore. The December 2024 agreement between Adani and Wilmar allowed mutual options to buy or sell shares, paving the way for this transition.

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Wilmar, founded in 1991 and headquartered in Singapore, operates in India primarily through AWL Agri Business and Shree Renuka Sugars Ltd, focusing on sugar milling and refining. AWL Agri Business reported a net profit of Rs 1,225.81 crore and total income of Rs 63,910.28 crore in the 2024-25 fiscal year, underscoring its significance in the agribusiness sector.

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