Mumbai: FMCG major Dabur India on Wednesday said the Bombay high court has approved merger of cosmetics maker Fem Care Pharma with it.
Last month, the Delhi high court, along with the Ministry of Corporate Affairs, equity shareholders, and secured and unsecured creditors of Dabur, had approved the merger.
“This approval will accelerate our (Dabur) growth in the core FMCG business. It will also give us a strong foothold in the high-growth skin care market with an established brand (FEM) and offers us a platform to enter newer product categories and markets,” Dabur Group director PD Narang said in a statement here.
The Fem Care acquisition would help Dabur leverage substantial synergies in markets such as Yemen, Maldives, Mauritius, Malaysia, UAE and Oman, he added.
The scheme of amalgamation was approved under the provisions of Sections 391 to 394 of the Companies Act, 1956, with the appointed date for the merger being 1 April 2009.
Dabur, that acquired 72.15% stake in Fem for Rs203 crore in an all-cash deal, has further picked up 20% additional stake for Rs56 crore through an open offer.
Fem Care, which is a market-leader in the fairness bleach category, hair removal and liquid soap category, now becomes a subsidiary of Dabur, the company said.