Tata Group Approves Big Basket Acquisition
Tata Group approves Big Basket acquisition, Competition Commission (CCI) approves proposed deal.
The Competition Commission of India (CCI) has approved the proposal of Tata Group to acquire a 64.3 percent stake in BigBasket.
The deal will strengthen the Tata group’s presence in the fast-growing online grocery market in India. The Tata group is already in several sectors.
Under this deal, Tata Digital Ltd (TDL) will buy 64.3% of the share capital of Supermarket Grocery Supplies Private Limited (SGS). In addition, Innovative Retail will also acquire full control of SGS over Concepts Pvt Ltd.
Tata Digital Limited can acquire 64.3 percent shares of SGS through primary and secondary acquisitions in one or more phases.
In a statement issued on Thursday by the Ministry of Corporate Affairs, SGS can gain full control of Innovative Retail Concepts Pvt Ltd through a separate transaction.
SGS is active in the business-to-business market and sells through business.bigbasket.com.
Innovative Retail Concepts is in the B2C business and sells grocery products to retail customers through the www.bigbasket.com and Big Basket mobile apps.
Tata Group had been trying to buy BigBasket for a long time.
The proposed deal paved the way for the exit of the company from Ali Baba and other investors controlled by Chinese billionaire industrialist Jack Ma.
Tata Digital Limited is a wholly-owned subsidiary of Tata Sons Pvt Ltd. TDL provides technology services such as identity and access management, loyalty programs, offers, and payments.
BigBasket was founded in 2011. The company operates in 25 cities in India. It competes with SoftBank-backed Grofers as well as Amazon India and Flipkart.
It is noteworthy that CCI approval is required for a deal exceeding a certain limit.
SBI board approves proposal to raise $ 2 billion through bonds, up about 3% in bank shares.
The Central Board of the country’s largest bank State Bank of India (SBI) has approved the proposal to raise two billion dollars (about Rs 14,880 crore) through bonds in the current financial year.
SBI gave this information on Wednesday.
The bank has told the stock exchanges that the Executive Committee of the Central Board, in its meeting on April 28, 2021, approved the proposal to raise up to $ 2 billion in long-term funds in one or several phases.
