Competition Commission of India (CCI) has approved Google Branch of parent company Alphabet to acquire stake in Shoreline International Holdings LLC wal-mart Group company Flipkart. The proposed transaction involves investment by way of subscription of shares Flipkart Private Limited by Shoreline International Holdings LLC; and an arrangement between an associate alphabet And a subsidiary of Flipkart for the provision of certain services.
CCI said in its order, Shoreline International Holding is a wholly owned subsidiary of Google’s parent firm Alphabet Inc. It is a holding company and does not own or operate any Google products or services.
What does the CCI order say on Alphabet’s investment in Flipkart?
“Flipkart is a subsidiary of Walmart Inc. and ultimately belongs to the Walmart Group. It is primarily engaged in the business of carrying wholesale cash and merchandise and is a marketplace-based e-commerce platform to facilitate trade between customers and sellers in India. -Provides commerce platform. CCI reads the order.
Google’s investment in Flipkart is part of a nearly $1 billion funding round that the company closed in May this year. This includes $350 million from Alphabet’s Google. With this funding, Flipkart was valued at $35-36 billion. The deal was awaiting approval since May this year. At that time, Flipkart had said that the investment is subject to regulatory and customary approvals from both parties.
US retail giant Walmart, which holds 85 percent stake in Flipkart, has invested $600 million in a fundraise starting in 2023.
In its order, CCI said Google’s investment in Flipkart involves “an extremely small and non-controlling acquisition of shareholding” and both parties will continue to operate independently after the transaction.
“Nevertheless, if the Hon’ble Commission is to assess the competitive impacts, its assessment should be focused only on those markets which are directly affected by the proposed transaction, i.e., the market for cloud services in India,” the order said.