The Competition Commission of India (CCI) has approved acquisition of a minority stake in Aditya Birla Fashion and Retail Limited (ABFRL) by Flipkart Investments Private Limited (FIPL). FIPL is a newly incorporated company and is a wholly owned subsidiary of Flipkart Private Limited (FPL). It has proposed acquisition of 7.8 per cent equity shares of ABFRL.
As per the October 2020 proposal, FIPL is to invest ₹1,500 crore for a minority shareholding of 7.8 per cent, on a fully diluted basis in ABFRL, by way of subscription of equity shares.
“In addition to approval of shareholders by way of Postal Ballot (received on November 22, 2020), the issue was subject to regulatory approvals and completion of customary closing conditions under the Investment Agreement. In this regard, we wish to inform you that CCI has accorded its approval to Flipkart for its proposed acquisition of 7.8 per cent equity stake in the company on a fully diluted basis vide its approval letter dated January 20, 2021,” ABFRL said on its website.
FPL belongs to the Walmart Group, which comprises Walmart Inc (Walmart) and its affiliates. The Walmart Group undertakes various business activities in India, such as wholesale trading of products,