Tata group gets CCI nod to buy Docomo stake in Tata Tele

NEWDELHI:The Competition Commission of India (CCI) has approved the Tata group’s purchase of 21.63% stake in group firm Tata Teleservices from Japan’s NTT Docomo, taking the long- pending billion-dollar deal a step closer to completion.

A joint filing was made with the CCI for acquisition of the stake in TTSL by Tata Sons Ltd and four other group firms— Tata Steel, Tata Industries, Tata Communications and Tata Power.

In their joint application, the five firms had said they “propose to undertake a transaction which will result in acquisition of equity shares of TTSL comprising 21.63 per cent of the paid-up equity share capital, by the acquirers from Docomo pursuant to certain consent terms entered into between Tata Sons and Docomo.”

In a tweet, the CCI said it has approved “Tata companies’ acquisition of 21.63 per cent shareholding in Tata Teleservices from NTT Docomo”. The Tata firms had represented before the CCI that the proposed transaction would not affect or change the competitive landscape of the telecommunications market in India.

Tata Sons had sought approvals of the CCI and tax authorities to remit $1.18 billion to estranged partner NTT Docomo to settle its long-standing dispute. The status of the approval sought from the tax department could not be immediately ascertained.