Tata Group’s plan to acquire one of India’s leading online grocery platform BigBasket received a big boost on Thursday with the Competition Commission of India giving a green signal for the proposed deal.
“The CCI approves acquisition by Tata Digital Limited of up to 64.3 per cent of the total share capital of Supermarket Grocery Supplies Private Ltd (SGS) and SGS’ sole control over Innovative Retail Concepts Private Limited (IRC),” a notification said.
The proposed combination involves acquisition by Tata Digital of up to 64.3 per cent 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. The proposed combination will result in the acquisition by Tata Digital of majority stake of and control over SGS.
While SGS is engaged in online business-to-business sales through business.bigbasket.com, IRC is engaged in online business-to-consumer sales and operates the bigbasket website.
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Tata Group has interests in diversified businesses, including steel, software, retail, tea and fast moving consumer goods. It has plans to launch a super app where it intends to bring all the Tata consumer facing brands and products on one platform. The acquisition of Bigbasket is a part of these plans and will give Tatas’ super app ambitions a shot in the arm.
The Tata Super app will take on Reliance Industries’ JioMart and the e-commerce giants like Amazon and Walmart-owned Flipkart, which have also expanded beyond the e-commerce offerings to other areas like payments and ticket bookings.
