American & Efird Global ( A&E ) will acquire additional 40 per cent of share capital in Vardhman Yarns and Threads (VYTL) from its JV partner Vardhman Textiles. Company will raising their stake in the JV to 89 per cent. A&E has received the nod for buying the additional stake from India’s Competition Commission.
VYTL manufactures sewing and other specialty threads, in which A&E earlier held 49 per cent stake, while the rest was with Vardhman Textiles.
This transaction makes A&E the majority shareholder in VYTL, while Vardhman will now hold a minority stake according to a spoke person.
The Competition Commission noted that the proposed combination will not have an appreciable adverse effect on competition in India. Since both VYTL and Gutermann India (GI), a wholly-owned subsidiary of A&E, have insignificant market shares in the apparel, automotive and specialty threads segments.
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