CCI clears Facebook’s $5.7 billion investment in Jio

BENGALURU: The Competition Commission of India (CCI) has cleared Facebook’s $5.7 billion investment in RIL-owned Jio Platforms, paving the way for closure of the deal. The application seeking the competition regulator’s nod was filed earlier in the month, as reported by TOI. Facebook’s investment Jio Platforms, which was a part of massive deleveraging exercise by RIL’s promoter Mukesh Ambani, was announced in April.
“@CCI_India approves acquisition of 9.99% stake in Jio Platforms by Jaadhu Holdings LLC,” the regulatory body said in a tweet on Wednesday. Jaddhu is the US-based entity, floated by Facebook, investing in Jio Platforms.

Both the parties in their application to CCI had said the deal is pro-competition, benefits consumers, kirana stores and other small and micro local Indian businesses. Facebook-owned WhatsApp, which would play a key role in RIL’s e-commerce initiative, has 400 million monthly active users while Jio has 370 million telecom subscribers.
“The proposed transaction does not alter the competitive landscape in any potential relevant market. Facebook and Jio Platforms will continue to operate independently,” they had said in the application, which cited consumer communication applications and advertising services as relevant markets to consider in this deal.
Since April, Jio Platforms, including Facebook deal, has got Rs 1.16 lakh crore from investors like KKR, Saudi Arabia’s Public Investment Fund (PIF), Vista Equity Partners and Silver Lake.





[Source – Times Of India]

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