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The Competition Commission of India (CCI) has cleared Walmart’s buyout of the Bharti Group’s stake in the Indian wholesaling joint venture.
On Monday, the fair trade regulator issued an order stating that the buyout by Walmart “is not likely to have appreciable adverse effect on competition in India and therefore, the commission hereby approves the proposed” deal.
Walmart and its joint venture partner of six years parted ways in October.
The deal between the Wal-Mart group and Sunil Bharti Mittal’s Bharti group involves two inter-connected and inter-dependent transactions.
Walmart will acquire Bharti’s 50 per cent stake, a move that would give the US retailer full control over the joint venture, which runs 20 Best Price Modern Wholesale stores.
The Bharti group will acquire the debentures held by Walmart in Cedar Support Services, the holding company of Bharti Retail Ltd, which runs the Easyday chain of retail stores.
The debentures were sold by the Indian company at a time when foreign direct investment (FDI) was not allowed in supermarkets (or so-called multi-brand retail).
bindu.menon@thehindu.co.in
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