Home/ Companies / News/  PayU terminates $4.7 billion acquisition of BillDesk

Prosus NV has canceled a $4.7 billion deal to buy Indian payments firm BillDesk after conditions on the deal were not met. The deal had received approval by the Competition Commission of India (CCI) last month, though the company said that ‘certain conditions precedent’ were not met by the deadline at the end of last month.

On 31 August 2021, Naspers announced that an agreement had been reached between PayU Payments Private Limited (PayU), a subsidiary of Prosus N.V. (Prosus), and the shareholders of the Indian digital payments provider BillDesk to acquire BillDesk for $4.7 billion. BillDesk, founded in 2000, is a leading payment businesses in the country.

“Closing of the transaction was subject to the fulfilment of various conditions precedent, including approval by the Competition Commission of India (CCI). PayU secured CCI approval on 5 September 2022. However, certain conditions precedent were not fulfilled by the 30 September 2022 long stop date, and the agreement has terminated automatically in accordance with its terms and, accordingly, the proposed transaction will not be implemented," Prosus informed on Monday, October 3, 2022.

The proposed acquisition would have seen PayU, the payments and fintech business of Prosus, become one of the leading online payment providers globally by total payment volume (TPV). The deal was aiming to create a digital payments giant with a total volume of $147 billion and betting on a surge in the industry in India. It would have been the company’s biggest acquisition to date. Naspers, through its subsidiary Prosus, has claimed to have invested close to $6 billion in Indian technology companies since 2005.

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Updated: 03 Oct 2022, 01:32 PM IST
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