{"id":123047,"date":"2021-04-29T06:42:04","date_gmt":"2021-04-29T06:42:04","guid":{"rendered":"https:\/\/precoinnews.com\/?p=123047"},"modified":"2021-04-29T06:42:04","modified_gmt":"2021-04-29T06:42:04","slug":"tatas-deal-to-buy-up-to-64-3-stake-in-bigbasket-gets-cci-approval","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/industries\/tatas-deal-to-buy-up-to-64-3-stake-in-bigbasket-gets-cci-approval\/","title":{"rendered":"Tatas deal to buy up to 64.3 % stake in BigBasket gets CCI approval"},"content":{"rendered":"
Competition Commission of India has approved Tatas\u2019 proposal to acquire up to 64.3 % stake in BigBasket, a deal that will provide the diversified group a strong foothold in the fast-growing online grocery market.<\/p>\n
Under the deal, Tata Digital Ltd (TDL) will purchase up to 64.3 % of the total share capital of Supermarket Grocery Supplies Pvt Ltd (SGS) as well as SGS sole control over Innovative Retail Concepts Pvt Ltd.<\/p>\n
SGS is into B2B (business-to-business) sales through the portal business.bigbasket.com.<\/p>\n
Innovative Retail Concepts Pvt Ltd (IRC) is engaged in B2C (business-to-consumer) sales through www.bigbasket.com and related mobile applications.<\/p>\n
A wholly-owned subsidiary of Tata Sons Pvt Ltd, TDL provides technology services related to identity and access management, loyalty programmes, offers and payments.<\/p>\n
An official release on Thursday said Competition Commission of India (CCI) has approved the proposed deal of Tata group acquiring up to 64.3 % stake in Bigbasket.<\/p>\n
The deal involves TDL buying 64.3 % of the total share capital of SGS (on a fully diluted basis) through a combination of primary and secondary acquisitions, in one or more series of steps. This is the first transaction.<\/p>\n
"It is stated that subsequently, through a separate transaction, SGS may acquire sole control over Innovative Retail Concepts Pvt Ltd (IRC) (transaction 2). Transaction 1 and Transaction 2 are collectively referred to as the proposed combination.<\/p>\n
"The proposed combination will result in the acquisition by TDL of majority stake of and control over SGS," the release said.<\/p>\n
Founded in 2011, BigBasket operates in 25 Indian cities. It competes with SoftBank-backed Grofers as well as Amazon India and Flipkart.<\/p>\n
Deals beyond a certain threshold require approval from CCI. <\/p>\n