The Competition Commission of India (CCI) has approved Tata Digital Ltd’s proposal to acquire a majority stake in Alibaba-backed online grocery marketplace BigBasket.
Tata Digital, a wholly-owned subsidiary of Tata Sons, had filed an application at CCI in March to acquire up to 64.3% of the total stake in Supermarket Grocery Supplies Ltd, the wholesale unit of BigBasket, through a combination of primary and secondary share purchases.
“CCI approves acquisition by Tata Digital Limited of up to 64.3% of the total share capital of Supermarket Grocery Supplies Private Ltd (SGS) and SGS’ sole control over Innovative Retail Concepts Private Limited,” according to a statement.
Innovative Retail Concepts operates BigBasket’s online retail business, giving Tata control over both wholesale and retail business units.
Though CCI has not disclosed the deal size, according to reports Tata will shell more than $1 billion for the majority stake.
Tata Digital is also likely to buyout Alibaba, which controls a 27.58% stake, and Actis LLP that owns 18.05% in BigBasket. Some other smaller investors are also expected to get an exit, according to reports.
This major deal in India’s digital sector will put Tata in direct competition with Grofers, Reliance’s Jio Mart, Amazon, and Walmart-owned Flipkart.
Commission approves acquisition by Tata Digital Limited of up to 64.3% of the total share capital of Supermarket Grocery Supplies Private Ltd (SGS) and SGS’ sole control over Innovative Retail Concepts Private Limited pic.twitter.com/2hBNW7QVq5
— CCI (@CCI_India) April 29, 2021
