Walmart Mauritius Holdings Ltd will acquire 50% stake from Bharti Ventures Ltd and Cedar Services Ltd
NEW DELHI :The Competition Commission of India has approved Walmart's buyout of Bharti Enterprises' stake in their wholesale joint venture Bharti Wal-Mart Private Ltd.
As per the agreement, Walmart Mauritius Holdings Ltd, an arm of Wal-Mart Stores Inc and an holding company, will acquire 50% stake from Bharti Ventures Ltd and Cedar Services Ltd, entailing 100% stake in Bharti-Walmart Pvt Ltd.
"…the Commission is of the opinion that the proposed combination is not likely to have appreciable adverse effect on competition in India…" the Competition Commission of India said.
As part of the proposed transactions, Bharti Ventures will acquire the compulsory convertible debentures held by Walmart Mauritius Holdings in Cedar Support Services, a subsidiary of Bharti Ventures Ltd.
Bharti Ventures is an investment holding company of Bharti Enterprises.
According to the deal, Bharti-Walmart will stop supplying merchandise to Bharti Retail, the retail arm of Bharti Group, which operates neighbourhood retail chain, Easyday Market.
"It is observed that the termination of the supply agreement may not adversely affect BRL (Bharti Retail Ltd) or the retail market in general due to the presence of alternative sources of procurement," the competition panel said in its order.
In October, Bharti Enterprises and US retail giant Walmart Stores Inc announced the end of their joint venture, which was formed in 2007 to set up franchise stores in India's wholesale sector.
The joint venture, for wholesale cash-and-carry and back-end supply chain management operations, had 212 stores.
Shares of Bharti Airtel, the flagship company of Bharti Group, ended down 2.3% at Rs 313.35 on the National Stock Exchange. -Cogencis
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