L'Oréal India seals Onesto Labs takeover with CCI nod

Prelims-testable facts

• 01The Competition Commission of India (CCI) has approved L'Oréal India's acquisition of 100% shareholding in Onesto Labs Private Limited.
• 02L'Oréal India Private Limited is engaged in the research, innovation, manufacture, marketing, sales, and export of beauty and personal care (BPC) products in India.
• 03Onesto Labs Private Limited is engaged in the manufacture and sale of BPC products across various segments, including skin care and hair care.
• 04The proposed combination pertains to the acquisition of 100% shareholding in Onesto Labs Private Limited by L'Oréal India Private Limited.
• 05L'Oréal India Private Limited markets its products in India under several globally recognized brands.
• 06Onesto Labs Private Limited is the parent company of the digital-first personal care platform Innovist.
• 07L'Oréal India Private Limited has obtained the approval of the Competition Commission of India (CCI) for the acquisition of Onesto Labs Private Limited.

Trap alerts

• Most people think the CCI only approves mergers between Indian companies, but actually, it also approves acquisitions by foreign companies, such as L'Oréal India's acquisition of Onesto Labs Private Limited.
• Most people think the CCI only considers the market share of the companies involved, but actually, it also considers other factors, such as the potential impact on competition and consumer welfare.
• Most people think the CCI's approval is only for a specific period, but actually, it is a permanent approval unless the combination is later found to be anti-competitive.