Competition Commission approves Tata’s acquisition of BigBasket
The Competition Commission of India (CCI) has approved Tata’s acquisition of BigBasket. With the Tata-BigBasket partnership, the conglomerate is now in competition against conglomerates like Amazon and Walmart’s Flipkart.
Earlier this year, Tata Digital Limited, a wholly-owned subsidiary of Tata Sons, had proposed to buy 64.3 per cent of Supermarket Grocery Supplies Private Ltd (SGS) that handles BigBasket’s business-to-business revenues in a filing with the CCI. The deal also includes SGS’ sole control over Innovative Retail Concepts Private (IRC) Limited.
The combined businesses of both SGS and IRC include (a) business-to-business (B2B) [business.bigbasket.com] sale of food and grocery, household products and personal and beauty care products (Relevant Products) in India; (b) business-to-consumer (B2C) [bigbasket.com] sale of relevant products in India; and (c) manufacturing and sale of certain packaged food and grocery products in India.
CCI has not disclosed the size of the deal but as per Economic Times, Tata will pay more than $1 billion for the majority stake. With this arrangement, Alibaba, one of the company’s earliest investors will get a full exit from the conglomerate. Alibaba group is reported to own a 27.58 per cent stake in the company.
CCI is yet to release the detailed order.
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