Burmans withdraw from race to buy HCCB stake over valuation differences

The Burman family, promoters of Dabur, have withdrawn from the race to acquire a 40% stake in Hindustan Coca-Cola Beverages (HCCB) due to valuation differences. HCCB, the bottling arm of Coca-Cola India, has valued the stake at Rs 10,000-11,000 crore, with an enterprise value of Rs 25,000-33,000 crore. Discussions are now focused on the Bhartias of Jubilant FoodWorks, who are looking to close the transaction by the end of the year. The Burmans’ exit from the race highlights the challenges in reaching a consensus on valuation in high-stakes acquisitions. Had the Burmans succeeded, they could have leveraged synergies between Dabur’s beverage business and HCCB’s manufacturing facilities. The ongoing negotiations with the Bhartias reflect the strategic importance of HCCB in the Indian beverage market and the potential for significant value creation through such acquisitions.