Published 19:02 IST, June 24th 2020
CCI approves Facebook's acquisition of 9.99% stake in Jio Platforms
On Wednesday, the Competition Commission of India (CCI) approved Facebook's new entity Jaadhu Holdings LLC's acquisition of a 9.99% stake in Jio Platforms.
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On Wednesday, the Competition Commission of India approved Facebook's new entity Jaadhu Holdings LLC's acquisition of a 9.99% stake in Jio Platforms. This implies that Facebook's investment of Rs.43,574 crore in Mukesh Ambani-led Jio Platforms has received official approval from the country's antitrust watchdog. Both Facebook and Reliance Industries Limited (RIL) submitted before the CCI that the proposed transaction does not alter the competitive landscape and that the former and Jio Platforms would continue to operate independently. Jio Platforms raised a total of Rs.1.15 lakh crore from a number of private equity firms and sovereign wealth funds.
@CCI_India approves acquisition of 9.99% stake in Jio Platforms by Jaadhu Holdings LLC.
— CCI (@CCI_India) June 24, 2020
'Largest investment for a minority stake by a technology company'
Facebook had announced the investment in Jio Platforms worth Rs.43,574 crore on April 22, changing the dynamics in the telecom sector. The RIL remarked that the investment is the "largest investment for a minority stake by a technology company anywhere in the world and the largest FDI in the technology sector in India" and that it will accelerate "India’s all-round development, fulfilling the needs of Indian people and the Indian economy." RIL chairman Mukesh Ambani welcomed Facebook as a long-term partner in transforming the digital ecosystem of India. He added that the synergy between Jio and Facebook would help achieve PM Modi's 'Digital India' Mission.
Mukesh Ambani, Chairman of RIL said, "All of us at Reliance are therefore humbled by the opportunity to welcome Facebook as our long-term partner in continuing to grow and transform the digital ecosystem of India for the benefit of all Indians. The synergy between Jio and Facebook will help realise Prime Minister Shri Narendra Modi’s ‘Digital India’ Mission with its two ambitious goals- ‘Ease of Living’ and ‘Ease of Doing Business’ – for every single category of Indian people without exception. In the post-Corona era, I am confident of India’s economic recovery and resurgence in the shortest period of time. The partnership will surely make an important contribution to this transformation.”
19:02 IST, June 24th 2020