The transaction involves acquisition by Tata Digital of up to 64.3% of the total share capital of SGS through a combination of primary and secondary acquisitions.

BigBasket on mobilePicxy.com/Abdul Munaff
Atom M&A Thursday, April 29, 2021 - 19:09

Tata Digital's proposed acquisition of 64.3% stake in Supermarket Grocery Supplies Private Ltd (SGS), which operates the business-to-business arm of the online grocery firm BigBasket, has received approval from the Competition Commission of India (CCI).

The proposed transaction involves acquisition by Tata Digital Limited (TDL) of up to 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.

Subsequently, through a separate transaction, SGS may acquire sole control over Innovative Retail Concepts Private Limited (IRC). The proposed combination will result in the acquisition by TDL of majority stake of and control over SGS.

Tata Digital Ltd (TDL) is a wholly owned subsidiary of Tata Sons Pvt Ltd, which is the ultimate holding company of the entities belonging to the Tata Sons group. At present, TDL is engaged in the business of providing technology services related to identity and access management, loyalty program, offers and payments.

SGS is incorporated under the laws of India and is engaged in online B2B sales of the relevant products in India through business.bigbasket.com.

IRC, incorporated under the laws of India, is engaged in online B2C sales of the relevant products in India and operates the website www.bigbasket.com and related mobile applications.

In March, Tata Digital had sought CCI approval to acquire 64.3% stake in SGS. In its submission to the anti-trust body, Tata Digital had said that the proposed transaction will not lead to any change in the competitive landscape or cause any appreciable adverse effect on competition in India, irrespective of the manner in which the relevant markets are defined.

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