Tata Digital had filed an application in March 2021 at CCI to acquire 64.3% of the total share capital in the parent company of BigBasket called Supermarket Grocery Supplies Private Ltd. The transaction will be a combination of primary and secondary shares.
The Competition Commission of India (CCI) has given a nod to the deal wherein Tata Digital Limited will acquire a majority stake in the grocery e-marketplace BigBasket.
Tata Digital had filed an application in March 2021 at CCI to acquire 64.3% of the total share capital in the parent company of BigBasket called Supermarket Grocery Supplies Private Ltd. The transaction will be a combination of primary and secondary shares.
Tata Digital is a wholly-owned daughter company of Tata Sons, while Innovative Retail Concepts Private Limited (IRC) operates Bengaluru-based bigbasket.com, a Business to consumer portal.
While CCI has not commented on the deal size, speculation says that Tata will shell out more than $1 billion for a majority stake in the company. The deal is also likely to give full exit to one of its earliest backers, the e-commerce platform called Alibaba, which holds a 27.58% stake in the door-step grocery company.
The acquisition will also have a significant effect on the landscape of the e-grocery players in the country. BigBasket and Grofers were the leaders, however, the entry of Reliance’s JioMart changed these dynamics. For the past 8-10 months, JioMart has been recording more tractions on its platform daily than the combined orders of Grofers and BigBasket.
Source: Business World
