Alphabet gets CCI’s clearance to acquire stake in Flipkart

PTI, Nov 26, 2024, 8:46 PM IST

New Delhi: The Competition Commission on Tuesday granted approval to Alphabet’s arm Shoreline International Holdings LLC to acquire a stake in Walmart group firm Flipkart.

Shoreline International Holding is a wholly-owned subsidiary of Google’s parent firm Alphabet Inc. It is a holding company and does not own or operate any Google products or services.

“The proposed transaction comprises an investment through subscription of shares of Flipkart Pvt Ltd (Target) by Shoreline International Holdings LLC (Acquirer) and an arrangement between an affiliate of the acquirer and the target’s subsidiary for the provision of certain services,” the regulator said in a release.

“Commission approves transaction involving subscription of shares of Flipkart Pvt Ltd by Shoreline, an Alphabet, Inc subsidiary,” the regulator said in a post on X.

Flipkart is a subsidiary of Walmart Inc and ultimately belongs to the Walmart Group. It is primarily engaged in the business of wholesale cash and carry of goods and providing marketplace-based e-commerce platforms to facilitate trade between customers and sellers in India.

In May this year, Walmart-owned Flipkart has closed a funding round of about USD 1 billion that includes USD 350 million from Alphabet’s Google.

US retail giant Walmart, which holds an 85 per cent holding in the Indian ecommerce major Flipkart, has invested USD 600 million in the fundraise that kicked off last year.

In a separate release on Tuesday, the Competition Commission of India (CCI) approved the acquisition of additional stake of DMI Finance Pvt Ltd by MUFG Bank, Ltd.

Delhi-based DMI Finance is a digital-led non-banking finance company that offers loans to individuals and small businesses.

The proposed combination envisages acquisition of additional securities of DMI Finance Pvt Ltd (DMI Finance) by MUFG Bank, Ltd, such that MUFG Bank’s shareholding will increase to 20 per cent of the share capital of DMI Finance, CCI said.

MUFG Bank is a Tokyo-headquartered banking institution. MUFG Bank is wholly owned and controlled by Mitsubishi UFJ Financial Group, Inc, which is a financial services and holding company.

MUFG Bank in India provides corporate banking loans, deposit accounts, remittances, trade finance and bank guarantees.

In August, Mitsubishi UFJ Financial Group, Inc (MUFG) and its subsidiary, MUFG Bank announced that the bank will make an additional investment of Rs 2,798.8 crore (approximately JPY 49 billion) in DMI Finance, a digital financial services business in India.

MUFG valued DMI Finance at USD 3 billion, becoming the digital lender’s second largest shareholder after DMI Ltd, Mauritius.

Deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices and promotes fair competition in the marketplace.