CCI CLEARS TATA’S ACQUISITION OF BIGBASKET

NEW DELHI: The Competition Commission of India has approved Tata group’s proposal to acquire up to 64.3% stake in BigBasket, a deal that will provide the diversified group a strong foothold in the fast-growing online grocery market.

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

SGS is into B2B (business-tobusiness) sales through the portal business.bigbasket.com.

Innovative Retail Concepts is engaged in B2C (business-toconsumer) 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.

An official release on Thursday said the CCI has approved the proposed deal of Tata group acquiring up to 64.3% stake in Bigbasket.

The deal involves TDL buying 64.3% 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 (transaction 2). Transaction 1 and Transaction 2 are collectively referred to as the proposed combination.