Synopsis
Tata Digital is likely to buy out Alibaba, which holds 27.58% stake and Actis LLP, which acquired several portfolios of scandal-hit Abraaj Group.
ETtech
The Competition Commission of India (CCI) has greenlit Tata Sons’ proposal to acquire a majority stake in Alibaba-backed BigBasket, setting the stage for a battle of the giants in the country s fast-growing online grocery segment.
Tata Digital, a wholly-owned subsidiary of Tata Sons, had sought CCI’s approval to acquire a 64.3% stake in Supermarket Grocery Supplies, the business-to-business arm of BigBasket, through a mix of primary and secondary share purchases.
Subsequently, through a separate transaction, Supermarket Grocery Supplies may acquire sole control over Innovative Retail Concepts which operates BigBasket’s online retail business, giving Tata control over both wholesale and retail business units.
CCI approves 64 pc acquisition of BigBasket by Tata Digital ANI | Updated: Apr 29, 2021 11:18 IST
The proposed combination involves acquisition through a combination of primary and secondary acquisitions in one or more series of steps. Through a separate transaction, SGS may acquire sole control over IRC, the Ministry of Corporate Affairs said in a statement on Thursday.
BigBasket is currently the leader in the online grocery segment and claims to have crossed the one billion dollar annual revenue run rate.
Tata Digital is engaged in the business of providing technology services related to identity and access management, loyalty programme, offers and payments.
Tata gets CCI nod to acquire 64.3% stake in BigBasket s Supermarket Grocery Supplies
The wholly-owned subsidiary of Tata Sons had sought the CCI s approval for the acquisition through a mix of primary and secondary share purchase
BusinessToday.In | April 29, 2021 | Updated 13:40 IST
The Competition Commission of India (CCI) has approved Tata Digital s acquisition of 64.3 per cent of BigBasket s B2B arm Supermarket Grocery Supplies. The commission said Supermarket Grocery Supplies may acquire sole control of Innovative Retail Concepts that operates BigBasket s online retail unit. The wholly-owned subsidiary of Tata Sons had sought the CCI s approval for the acquisition through a mix of primary and secondary share purchase. This approval sets the stage for the impending battle of the giant s in the country s grocery segment that has players like Flipkart and Amazon Fresh.
UPDATED: April 29, 2021 18:09 IST
CCI has approved Tata Group s proposal to acquire majority stake in online grocer BigBasket. (Photo: Reuters)
Tata Group s proposal to acquire a majority stake in online grocer BigBasket has been approved by the Competition Commission of India (CCI). The move is likely to intensify the competition between large conglomerates who are looking to strengthen their position in India s fast-growing online grocery segment.
Tata Digital, which is a wholly-owned subsidiary of Tata Sons, had earlier sought the CCI s permission to acquire 64.3 per cent stake in BIgBasket’s business-to-business wing, Supermarket Grocery Supplies, through a mixture of primary and secondary share purchases.
Grocery wars
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Tata Digital Limited, which has been looking to buy into BigBasket for many months, received a go-ahead from India’s competition watchdog earlier today. It sets the stage for an almighty tussle with Amazon, Reliance JioMart and Flipkart.
Also in today’s letter:
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Udaan announces share buyback
Tata-BigBasket deal gets CCI approval
The stage is set for a battle of the giants in India s fast-growing online grocery segment. Tata Sons proposal to buy a majority stake in Alibaba-backed BigBasket has got the go-ahead from the Competition Commission of India (CCI).