Social Media giant Facebook’s $5.7 billion investment in Jio Platforms has received a green signal from the regulatory watchdog, the Competition Commission of India (CCI).
@CCI_India approves acquisition of 9.99% stake in Jio Platforms by Jaadhu Holdings LLC.— CCI (@CCI_India) June 24, 2020
Earlier this month, Menlo Park, California based Facebook had floated an indirect wholly-owned subsidiary Jaadhu Holdings to acquire 9.99% stake in Jio Platforms, which is owned by Reliance Industries (RIL). Jaadhu was incorporated in March 2020 in Delaware, US.
In April, Facebook had announced an investment of $5.7 billion or Rs 43,574 crore for a minority stake in the Jio Platform, at a valuation of Rs 4.62 lakh crore pre-money.
According to the notice filed with the competition regulator, the investment by Facebook will not alter the competitive landscape in any potential relevant market. It also said that the common segments evaluated for the deal, which include consumer communication applications and advertising services, do not have a “significant horizontal overlap” in either segment.
Last week, Saudi Arabia headquartered Public Investment Fund (PIF) agreed to invest close to $1.5 billion (about Rs 11,367 crore at current exchange rates) in Jio Platforms. With this investment, the company declared itself as debt-free with the total tally of funds raised at $15.2 billion (Rs 115,694 crore).
PIF was the tenth investor external investor and third sovereign wealth fund from the Middle East to have invested in Jio Platforms. Global private equity players including Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala Investment Company, Abu Dhabi Investment Authority (ADIA), TPG and L Catterton have already infused funds in the company.