With little scrutiny over the billion-dollar deal, Competition Commission of India (CCI) has approved Facebook investment in Reliance Industries telecom and digital arm, Jio Platforms. The approval came within a month after a report broke that the deal is under an antitrust review by the regulator.
As per the terms, Facebook through its holding company Jaadhu Holdings LLC has acquired 9.99 per cent stake in RIL’s Jio Platforms. The deal is worth $5.7 billion or around Rs 43,574 crore. This deal also brings RIL’s retail plan close to Facebook. RIL’s e-commerce venture, the JioMart now integrate WhatsApp to connect its customers with business, shop and ultimately purchase products in a seamless mobile experience.
Those who may be in doubt of hearing Jaadhu Holdings LLC for the first time, then its a newly incorporated company, wholly owned by Facebook. It was incorporated, just a few months back in March 2020 under the laws of the State of Delaware, United States. As on the date of the Notification Form, Jaadhu has not engaged in any business in India or anywhere in the world.
Talking about the investment spree of Jio Platforms, it attracted an investment of Rs 104,326.95 crore by selling almost 22.38 per cent stake. Leading global investors poured in their money, who include Facebook, Silver Lake (2 investment), Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton and PIF.