The Competition Commission of India (CCI) has permitted acquisition by Tata Digital Limited of up to 64.3% of the total share capital of Supermarket Grocery Supplies Private Ltd (SGS) and its sole control over Innovative Retail Concepts (IRC), the firm that runs BigBasket.
The proposed combination involves attainment through a combination of primary and secondary acquisitions in one or more series of steps. Through a separate transaction, SGS may attain sole control over IRC, the Ministry of Corporate
Affairs stated in a statement.
Tatas have been eyeing to buy into BigBasket for the past many months and the proposed deal also delivers an exit route for a host of investors, including Chinese billionaire Jack Ma-controlled Alibaba.
The Tata group has planned to acquire more than 60 per cent stake in online grocery platform BigBasket, according to a filing, as the conglomerate seeks to expand in the fast-growing e-commerce space.
The group plans to purchase up to 64.3 per cent stake in Supermarket Grocery Supplies Pvt Ltd (SGS) through a combination of primary and secondary acquisitions, a filing with the Competition Commission of India (CCI) showed.
The parties to the planned deal are Tata Digital Ltd (TDL), SGS and Innovative Retail Concepts Pvt Ltd (IRC) -- which is engaged in B2C (Business to Consumer) sales through www.bigbasket.com and related mobile applications.
Founded in 2011, BigBasket operates in 25 Indian cities. It competes with SoftBank-backed Grofers as well as Amazon India and Flipkart.