CCI has given nod to eBay Singapore's subscription of compulsorily convertible preference shares (CCPS) issued by Flipkart.
New Delhi: 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. 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 per cent share capital of eBay India by Bangalore 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 USD 1.4 billion from Tencent Holdings, Microsoft Corp and eBay Inc. eBay will invest USD 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. "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.
Flipkart will continue to operate eBay.in as an independent entity.