Antitrust agency Competition Commission of India (CCI) on Wednesday approved the acquisition of full stake in its joint venture firm Prione Business Services with Amazon’s Catamaran.
In August last year, Amazon and NR Narayana Murthy’s catamaran announced that they would not continue their joint venture, Prion Business Services, beyond May 2022.
The business of the JV will continue under the leadership of the current management and upon regulatory approval, while the Board of Priyan and Cloudtail will take steps to complete the transaction in compliance with applicable laws.
Prione Business Services was formed in 2014 and coming up for renewal on May 19th, 2022. Amazon and Catamaran did not disclose the reason behind the decision.
In 2018, the government had introduced stricter norms for foreign-invested e-commerce marketplaces, stating that they do not sell products of their group companies on their platforms. After that, Prion Business Services was restructured.
Though the companies did not give details, news agency PTI had earlier reported that Amazon’s stake dropped from 49% to 24% after the restructuring.
Earlier, domestic traders’ body CAIT had opposed the deal, claiming that Amazon’s plan to acquire Prione Business Services would be in violation of foreign direct investment policy.
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