Business

Tatas’deal to buy 64.3 pc in BigBasket cleared by CCI

Competition Commission of India has approved Tatas’ proposal to acquire up to 64.3 per cent stake in BigBasket, a deal that will provide the diversified group a strong foothold in the fast-growing online grocery market.

migrator

New Delhi

Under the deal, Tata Digital Ltd (TDL) will purchase up to 64.3 per cent of the total share capital of Supermarket Grocery Supplies Pvt Ltd (SGS) as well as SGS sole control over Innovative Retail Concepts Pvt Ltd (IRC).

SGS is into sales through the portal business.bigbasket.com. IRC is engaged in B2C (business-to-consumer) sales through www.bigbasket.com and related mobile applications.

A wholly-owned subsidiary of Tata Sons Pvt Ltd, TDL provides technology services related to identity and access management, loyalty programmes, offers and payments. A release on Thursday said Competition Commission of India (CCI) has approved the proposed deal of Tata group acquiring up to 64.3 per cent stake in Bigbasket.

The deal involves TDL buying 64.3 per cent 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. “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,” it said.

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