A Tata Group company has reached out to the Indian Competition Commission to secure the acquisition of Innovative Retail Concepts Pvt., The parent company of the online grocer BigBasket.com, as the Salt-to-Software Group strengthens its retail business.
“Regardless of how the relevant markets are defined, the proposed transaction will not result in any change in the competitive landscape or any significant adverse effect on competition in India,” said Tata Digital Ltd. in their proposal to the competition observer.
As part of the deal, Tata Digital acquired a 64.3% stake in Supermarket Grocery Pvt., Which operates the business-to-business distribution of BigBasket. The proposal allows Supermarket Grocery to take sole control of Innovative Retail.
Supermarket Grocery now controls the online business-to-business sales of BigBasket and Innovative Retail at bigbasket.com.
Bloomberg reported in December that both sides were at an advanced stage in talks about the takeover. Approval from the Chamber of Industry and Commerce is required because the regulatory authority has the task of ensuring a level playing field and ensuring that no transaction affects the competitive landscape of an industry.
The transaction aims to boost the salt and steel conglomerate’s retail business at a time when the Indian retail business has accelerated. About half of that $ 1 trillion market is made up of grocery sales.
Mukesh Ambanis Reliance Retail Ventures Ltd. has agreed to buy Future Retail Ltd., the operator of Big Bazaar stores. The deal faces legal challenges from Amazon.com Inc.