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CCI clears Tata’s acquisition of BigBasket

SGS’ sole control over Innovative Retail Concepts Pvt. Ltd, which is into online retailing is also covered by the acquisition. IRC operates the website www.bigbasket.com and related mobile applications. (Aniruddha Chowdhury/Mint)Premium
SGS’ sole control over Innovative Retail Concepts Pvt. Ltd, which is into online retailing is also covered by the acquisition. IRC operates the website www.bigbasket.com and related mobile applications. (Aniruddha Chowdhury/Mint)

  • Tata’s digital services arm Tata Digital Ltd’s can acquire up to 64.3% of the total share capital of Supermarket Grocery Supplies Private Ltd engaged in online business-to-business transactions through business.bigbasket.com.

NEW DELHI : The Competition Commission of India has cleared Tata group’s purchase of online grocer BigBasket, an official statement said, adding that a detailed order will be issued.

The statement did not suggest any modification to the acquisition which is reported to be of Rs9,500 crore. The competition watchdog can suggest modifications to transactions if any element of a deal is found to pose an appreciable adverse effect on competition. That is determined by taking into account the combined presence of the entities after the transaction in specific product or service markets.

The statement said that CCI approved Tata’s digital services arm Tata Digital Ltd’s acquisition of up to 64.3% of the total share capital of Supermarket Grocery Supplies Private Ltd (SGS) engaged in online business-to-business transactions through business.bigbasket.com. SGS’ sole control over Innovative Retail Concepts Pvt. Ltd (IRC) which is into online retailing is also covered by the acquisition. IRC operates the website www.bigbasket.com and related mobile applications.

The transaction involves Tata group taking stake in SGS on a fully diluted basis in one or more series of steps. Subsequently, through a separate transaction, SGS may acquire sole control over IRC.

Tata Digital is a wholly owned subsidiary of Tata Sons Pvt Ltd., the ultimate holding company of the Tata Sons group. Tata Digital offers technology services related to identity and access management, loyalty programme, offers and payments, CCI said.

Mint reported on 13 March that Tata Sons, through its group entities, is already engaged in the business of selling food and grocery, household products and personal and beauty care products. The BigBasket acquisition will give Tata an immediate head-start to take on bigger rivals Reliance Industries Ltd, Amazon and Walmart-Flipkart in the retail industry, especially in the online grocery and household products space, the Mint report said.

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