CCI Approves Amazon's 76% Stake in Frontizo
Jul 23, 2024 22:50
India's competition regulator CCI has cleared Amazon's acquisition of a 76% stake in Frontizo, a company that operates Appario Retail, a major seller on Amazon India.
New Delhi, Jul 23 (PTI) Fair trade regulator CCI on Tuesday approved Amazon Asia-Pacific Holdings' proposal to acquire a 76 per cent stake in Frontizo from Zodiac Wealth Advisors LLP.
Frontizo's wholly-owned subsidiary, Appario Retail, is engaged in retail (B2C) business and wholesale (B2B) sales in India. It offers products to customers on the Amazon India Marketplace.
Appario is a JV of Amazon and Patni group-owned Zodiac Wealth Management. Zodiac had a 76 per cent stake, Amazon Asia Pacific Holdings held a 23 per cent stake with Zaffre LLC holds a 1 per cent share in Appario Retail.
"The proposed combination involves acquisition by Amazon Asia-Pacific of 76 per cent of the equity shares in Frontizo from Zodiac Wealth Advisors LLP (Zodiac)," the Competition Commission of India (CCI) said in a release.
Meanwhile, the CCI also cleared the acquisition of Appario's entire business, as a going concern, by Clicktech Retail Pvt Ltd (CRPL) and buying of 1 per cent shareholding by Haverl in New Trends Commerce Pvt Ltd (NTCPL).
Clicktech Retail is a seller on Amazon India marketplace.
Haverl is engaged in the business of making and holding investments, CEPL is the parent/holding entity of NTCPL. The latter is the parent entity of CRPL.
CRPL is engaged in B2C and B2B sale of products to customers on the Amazon India marketplace.
In separate releases, CCI announced giving its clearance to Sanlam Emerging Markets (Mauritius) Ltd (SEMM) proposal to acquire a 16.12 per cent stake each in Shriram LI Holdings and Shriram GI Holdings.
Shriram LI Holdings Pvt Ltd (SLIH) is the promoter and holding company of Shriram Life Insurance Company Ltd (SLIC). SLIH has a 74.56 per cent stake in SLIC.
Shriram GI Holdings Pvt Ltd (SGIH) is the promoter and holding company of Shriram General Insurance Company (SGIC). SGIH holds a 66.64 per cent stake in SGIC.
SEMM, incorporated in Mauritius, is a 100 per cent subsidiary of Sanlam Ltd, South Africa. It is part of the Sanlam Group.
The deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace.
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