Big update in Tata-Bisleri deal, will the deal go on hold?
Tata and Bisleri Deal Update: The country’s biggest mineral water deal seems to be getting a big blow. This deal was going on between Tata Group and Bisleri International, which is now stuck. The Tata group had come forward to buy Bisleri, the country’s largest bottling company. There was a lot of advance conversation between the two. Tata is not ready to pay the amount that Bisleri had estimated. The talk between the two companies is stuck regarding the valuation of the company. Let us also tell you where the screw is stuck in this deal.
What stuck deal
It has been revealed in the Bloomberg report that the talks between the two companies regarding the deal have stopped. According to sources having information about this whole deal, this deal is stuck due to the valuation of the company. Representatives of Tata and Bisleri are adamant about their respective valuations. The surprising thing is that the talks of both the parties had reached a very advanced level and the structure of the transaction was being discussed.
Talks stuck on valuation
According to media reports, the promoters of Bisleri were expecting to get one billion dollars from this deal. The deal got hit when both the companies were not ready on the valuation. If sources are to be believed, talks can start again between Tata Group and Bisleri, while other companies can also come forward to buy Bisleri. Both Tata and Bisleri have refused to make any comment.
60 percent of the market is occupied
Bisleri has 60 per cent market share in India on bottled mineral water. According to Bisleri’s website, soft drinks maker Parle Group was founded by Jayantilal Chauhan in 1949. Bisleri was bought from an Italian businessman in the year 1969. At present, the company also manufactures hand sanitizers. Bisleri’s chairman Ramesh Chauhan said in an interview in November that he was preparing to sell Bisleri to Tata. The Tata group was also expected to benefit greatly from this deal. This deal would further strengthen the bottled water portfolio of the Tata Group. The group already has Himalayan Natural Mineral Water and Tata Water Plus brands.
