Acquisition amount to help strengthen market position
Flipkart Investments Private Limited (FIPL) has approval from Competition Commission of India (CCI) to acquire a 7.8% minority stake in Aditya Birla Fashion and Retail Limited (ABFRL) for Rs.1,500 crore.
FIPL is a newly incorporated company and is a wholly owned subsidiary of Flipkart Private Limited (FPL) which belongs to the Walmart Group and undertakes various business activities in India, such as wholesale trading of products, providing e-commerce marketplace services and digital payments services.
ABFRL is a public limited company incorporated in India and is part of the Aditya Birla conglomerate and is engaged in the business of manufacturing and retailing branded apparels, footwear and accessories, through its retail stores, multi-brand outlets, departmental stores, online retail platforms and e-commerce marketplaces, across India.
The proposed combination relates to acquisition by FIPL of a minority shareholding of 7.8%, on a fully diluted basis in ABFRL, by way of subscription equity shares, said Ministry of Corporate Affairs, reporting the CCI approval on 21 Jan 2021.
Both companies are planning to the acquisition amount for further strengthening the online-retail business in the Indian market. #investment #retail #consumer #market /fiinews.com
