The Competition Commission of India (CCI) on Thursday approved Amazon's proposed Rs 1,500 crore deal to acquire 49 per cent stake in Future Coupons Ltd (FCL), a Future Retail promoter group company.
"The proposed combination pertains to the acquisition by the acquirer (Amazon.com NV Investment Holdings) of approximately 49 per cent of the voting and non-voting equity shares of the target (Future Coupons Ltd)," CCI said in its order.
The proposed combination consists of certain other constituent steps involving FCL, Future Corporate Resources Private (FCRPL), and Future Retail.
Kishore Biyani-owned Future Coupons currently does not own a stake in Future Retail but had recently subscribed to convertible warrants for Rs 2,000 crore.
Amazon.com NV Investment Holdings is a direct subsidiary of Amazon.com, Inc (ACI) and belongs to the Amazon group. ACI is the ultimate parent entity of the Amazon group, it added.
The deal is basically aimed at enhancing the payments portfolio of both the companies. The company has embarked on a Rs 1,000- crore investment plan for creating distribution centres for its food-on-demand venture.
Named as India Food Grid, the project will connect the entire country through a single, multi-layer network.
Edited by Chitranjan Kumar with PTI inputs
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today