Jio Platforms Stake Acquisition by Facebook’s Jaadhu Holdings Gets CCI Approval

Neither Reliance Industries nor Facebook revealed the involvement of Jaadhu Holdings at the time of announcing the deal in April.

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Jio Platforms Stake Acquisition by Facebook’s Jaadhu Holdings Gets CCI Approval

Reliance Industries made its Jio Platforms’ deal with Facebook public in April

Highlights
  • Jio Platforms will get Rs. 43,574 crores from Facebook’s Jaadhu
  • The deal came under an antitrust review last week
  • Jio Platforms raised 1,15,693.95 crores in less than two months

The Competition Commission of India (CCI) has approved the acquisition of 9.99 percent stake in Jio Platforms by Facebook's Jaadhu Holdings LLC. The approval comes months after the deal got public in April. It recently came under an antitrust review by the regulator. As per the terms of the deal announced by Reliance Industries, the parent company of Jio Platforms, Facebook would invest Rs. 43,574 crores in Jio. Both companies also partnered for Reliance's e-commerce marketplace JioMart that is aimed to take on Amazon and Walmart-owned Flipkart in the country.

On Wednesday, the official Twitter account of the CCI revealed the approval of the Jio Platforms acquisition by Facebook's Jaadhu Holdings. The deal came under the antitrust review last week — nearly two months after it became public on April 22.

The CCI Chairman Ashok Kumar Gupta told Bloomberg in an interview that the regulator looks to prevent misuse of data in all the deals it assesses. He, however, didn't provide any timeline for the decision.

Neither Reliance Industries nor Facebook revealed involvement of Jaadhu Holdings at the time of publicly announcing the acquisition in April. However, a notice order at the CCI divulged that it is a newly incorporated company, wholly owned by Facebook, formed in March this year “under the laws of the State of Delaware, United States”. The subsidiary was touted to not engage “in any business in India or anywhere in the world” prior to the Jio deal. The notice also emphasised that the proposed transaction between Jio and Facebook “does not alter the competitive landscape in any potential relevant market”.

In less than two months, Jio has raised Rs. 1,15,693.95 crores by selling its total 24.70 percent stake to global companies including Silver Lake Partners, Vista Equity Partners, General Atlantic, KKR, Mubadala, Abu Dhabi Investment Authority, TPG, and L Catterton. This also comprises the acquisition made by Facebook's Jaadhu and the recent 2.3 percent stake being acquired by Saudi Arabia's sovereign wealth fund Public Investment Fund (PIF) at Rs. 11,367 crores just last week.


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Jagmeet Singh Jagmeet Singh writes about consumer technology for Gadgets 360, out of New Delhi. Jagmeet is a senior reporter for Gadgets 360, and has frequently written about apps, computer security, Internet services, and telecom developments. Jagmeet is available on Twitter at @JagmeetS13 or Email at jagmeets@ndtv.com. Please send in your leads and tips. More
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