In 2017, Pelliconi and C. S.p.A. (Pelliconi), an Italian leader in manufacturing closures for the food and beverage industry, initiated the acquisition of a majority stake in Oricon Packaging Limited (Oricon), an Indian company in the packaging sector. The acquisition was expected to strengthen Pelliconi’s foothold in the Indian market by leveraging Oricon’s local production capabilities. However, the deal was ultimately terminated before completion.
Majmudar & Partners served as legal counsel to Pelliconi throughout this transaction, advising on Indian corporate regulations, due diligence, and compliance with local laws.
Facilitating the Transaction
Majmudar & Partners managed the transaction’s legal complexities. Key areas of assistance included:
- Due Diligence and Compliance: Conducted an in-depth due diligence review of Oricon Packaging Limited to assess the regulatory, tax, and legal compliance, ensuring Pelliconi had a clear understanding of the operational and legal landscape.
- Structuring the Deal: Advised on structuring the acquisition in alignment with Indian corporate and foreign investment laws, particularly given India’s packaging industry regulations and the nuances of cross-border acquisitions.
- Drafting and Negotiating Transaction Documents: Drafted and negotiated transaction documents, including share purchase and shareholder agreements, to protect Pelliconi’s interests while facilitating a collaborative relationship with Oricon’s management.
- Managing Termination Procedures: Assisted Pelliconi in navigating the formal procedures required to terminate the acquisition deal while ensuring compliance with Indian regulations for contract closure and exit.
Though Pelliconi’s acquisition of Oricon did not materialize, the strategic rationale behind the move was clear: gaining a foothold in India’s booming packaging market and leveraging local capabilities to strengthen its global operations. Majmudar & Partners provided crucial legal guidance to ensure regulatory compliance and manage the complexities of the transaction process.
With a strong track record in handling complex joint ventures and cross-border acquisitions, Majmudar & Partners offers expert legal counsel to companies navigating the Indian regulatory landscape. Contact us today to ensure that your joint venture transactions are executed smoothly, supported by comprehensive legal advice and due diligence.