New Delhi: Naspers-owned Prosus NV, a Dutch-based technology investor, has terminated its $4.7 billion agreement to acquire payments provider BillDesk, a month after a deal between Prosus arm PayU and BillDesk shareholders The deal was cleared by India’s competition watchdog.
“BillDesk shareholders are shocked. It was very last minute. A multinational corporation (MNC) has signed a binding contract in India and is moving away,” said a person directly aware of the development on condition of anonymity. Told. “We’ll find out what needs to be done contractually and legally against Prosus.”
While PayU had secured the approval of the Competition Commission of India (CCI) on September 5, the closure of the deal was subject to several other approvals.
With the completion of the deal, PayU’s parent firm Prosus was expected to bring the total investment in India to around $12 billion. Naspers, which has invested more than $6 billion in India’s technology sector since 2005, First announced the acquisition last AugustPaving the way for one of the biggest consolidation in India’s FinTech sector.
However, later a formal announcement was made in response to a show cause notice issued by the CCI, which was required to be replied by August 2022. It filed a revised merger notification in April this year, addressing the queries of the competition regulator. ,
PayU said the acquisition is unlikely to have any adverse impact on competition in India’s fintech sector due to the highly competitive and dynamic nature of the markets.
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