December 10, 2022
Jio Platforms’ acquisition by Facebook’s Jadhu Holdings receives CCI nod

The Competition Commission of India (CCI) has approved the acquisition of 9.99 per cent stake in Jio Platforms by Jadhu Holdings LLC of Facebook. The approval comes months after the deal went public in April. It recently came under an antitrust review by the regulator. As per the terms of the deal announced by Reliance Industries, the parent company of Jio Platforms, Facebook will invest Rs. 43,574 crore in Jio. The two companies also partnered for Reliance’s e-commerce marketplace JioMart, which aims to take on Amazon and Walmart-owned Flipkart in the country.

CCI’s official Twitter account on Wednesday revealed Approval of acquisition of Jio Platforms by Jadhu Holdings of Facebook. The deal came under antitrust review last week, nearly two months after it went public on April 22.

CCI President Ashok Kumar Gupta said in an interview to Bloomberg that the regulator wants to prevent misuse of data in all deals that it assesses. However, he did not specify any timeline for the decision.

Neither Reliance Industries nor Facebook disclosed the involvement of Jadhu Holdings when the acquisition was publicly announced in April. However, a notice order in the CCI Expose That it is a newly incorporated company, wholly owned by Facebook, was formed “under the laws of the State of Delaware, United States” in March of this year. The subsidiary was asked to “not engage in any business in India or anywhere in the world” prior to the Jio deal. The notice also emphasized that the proposed transaction between Jio and Facebook “does not change the competitive landscape in any potentially relevant market”.

In less than two months, Jio has made Rs. 1,15,693.95 crore by selling its total 24.70 per cent stake to global companies including Silver Lake Partners, Vista Equity Partners, General Atlantic, KKR, Mubadala, Abu Dhabi Investment Authority, TPG, and L Catterton. This includes the acquisition by Jadhu of Facebook and more recently by Saudi Arabia’s sovereign wealth fund Public Investment Fund (PIF) for Rs. 11,367 crores only last week.

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