Tata Sons board nixes Rs 400 crore proposal to buy Prabhat Dairy.

Tata Sons has rejected a proposal by the group’s mergers & acquisitions team for Tata Global Beverages to purchase Prabhat Dairy for about Rs 400 crore, said two people with knowledge of the development. 

“The board did not see it significant enough to scale up the business in the challenging dairy sector, and instead asked Tata Global Beverages to focus on its core business,” said a person. 

The Tata Sons board had earlier sought a due diligence report on a proposal to purchase cash-starved Jet Airways before taking up the plan for consideration. The board, headed by N Chandrasekaran, discussed both proposals on November 16. 

The group’s plan to purchase Jet Airways calls for an all-stock merger between Naresh Goyal’s carrier and Vistara Airlines, a joint venture between Singapore Airlines and Tata Sons. 

The board of Tata Sons is asking tough questions on deals placed before it for approval by the new M&A team. 

ET