E-commerce major Flipkart’s proposed acquisition of eBay India has received approval from the Competition Commission. Besides, the fair trade regulator has given nod to eBay Singapore’s subscription of compulsorily convertible preference shares (CCPS) issued by Flipkart. Also Read - Diwali celebrations 2021: Best deals on home appliances under Rs 5,000Also Read - Flipkart Big Diwali Sale begins October 28: Best deals, discounts, offers on smartphones
In a tweet, the Competition Commission of India (CCI) said that it has approved “subscription by eBay Singapore of CCPS issued by Flipkart and acquisition of eBay India by Flipkart”.
As per the notice submitted to the regulator, the transaction relates to the acquisition of 100 percent share capital of eBay India by Bengaluru-based e-commerce firm Flipkart. The transaction also involves the acquisition of certain compulsorily convertible preference shares of Flipkart by eBay Singapore, as per the notice. Earlier this year, Flipkart had raised $1.4 billion from Tencent Holdings, Microsoft and eBay. ALSO READ: Happy for Flipkart, but in reality it s failure on part of eBay in India
eBay will invest $500 million in Flipkart as the two firms will merge their operations in the country. As part of the deal, Flipkart will own and operate eBay’s business in India. ALSO READ: Flipkart acquires eBay India; raises $1.4 billion from Tencent, eBay, Microsoft
“eBay and Flipkart have also entered into an exclusive agreement in which they will jointly pursue cross-border trade opportunities to make eBay’s global inventory accessible to more India consumers,” eBay had said in April.
eBay plans to close the sale of its India business to Flipkart in H2 2017. Flipkart had said it continue to operate eBay.in as an independent entity. ALSO READ: Flipkart to Amazon: Top 10 tech companies Indians want to work at