Retail major Walmart Stores Inc has received a go-ahead from the Competition Commission of India (CCI) to buy out Bharti group's almost 50 per cent stake in their Indian joint venture for wholesale stores business.
The joint venture, Bharti Walmart Pvt Ltd, was set up to operate wholesale stores under the Best Price Modern Wholesale brand and currently owns 19 such wholesale cash-and-carry stores across India.
According to the order released on Monday, the CCI said that the proposed buyout of Bharti group's stake in the JV by Walmart "is not likely to have appreciable adverse effect on competition in India".
In October, Walmart and Bharti had decided to go separate ways and had approached CCI in November, seeking approval for the deal.
The split between the two groups involves two inter-connected and inter-dependent transactions with respect to their businesses.
The first is the acquisition of 50 per cent minus 515 equity shares of Bharti Walmart from BVL and Cedar Support Services Ltd.
The remaining shares are already held by Walmart. The second transaction involves the acquisition of 455.8 million compulsorily convertible debentures (CCDs) of Cedar by BVL from Walmart Mauritius Holdings.
BVL is an investment holding company of the Bharti group, while Cedar is a wholly-owned subsidiary of BVL and provides real estate consultancy services.Bharti Retail, is a wholly-owned subsidiary of Cedar, and operates the Easyday chain of stores.
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