The Competition Commission of India (CCI) has approved Alphabet subsidiary Shoreline International Holdings LLC’s acquisition of a stake in Flipkart, a Walmart group firm. Shoreline International, a wholly-owned entity of Google’s parent company Alphabet Inc., will invest in Flipkart by subscribing to its shares.
The CCI stated that the deal includes an investment in Flipkart Pvt Ltd and an arrangement between an affiliate of Alphabet and Flipkart’s subsidiary for specific service provisions. Flipkart, a leading e-commerce platform, is primarily engaged in wholesale trade and marketplace-based e-commerce services.
In a post on X, the CCI announced, “Commission approves transaction involving subscription of shares of Flipkart Pvt Ltd by Shoreline, an Alphabet Inc subsidiary.”
This development follows Flipkart’s recent funding activities. Earlier this year, Walmart-backed Flipkart closed a $1 billion funding round, including $350 million from Google, demonstrating Alphabet’s growing interest in the Indian e-commerce sector. Walmart, which owns 85% of Flipkart, contributed $600 million to the fundraise, bolstering Flipkart’s market position.
In a separate release on Tuesday, the Competition Commission of India (CCI) approved the acquisition of additional stake of DMI Finance Pvt Ltd by MUFG Bank, Ltd.
Delhi-based DMI Finance is a digital-led non-banking finance company that offers loans to individuals and small businesses.
The proposed combination envisages acquisition of additional securities of DMI Finance Pvt Ltd (DMI Finance) by MUFG Bank, Ltd, such that MUFG Bank’s shareholding will increase to 20 per cent of the share capital of DMI Finance, CCI said.
MUFG Bank is a Tokyo-headquartered banking institution. MUFG Bank is wholly owned and controlled by Mitsubishi UFJ Financial Group, Inc, which is a financial services and holding company.
MUFG Bank in India provides corporate banking loans, deposit accounts, remittances, trade finance and bank guarantees.
In August, Mitsubishi UFJ Financial Group, Inc (MUFG) and its subsidiary, MUFG Bank announced that the bank will make an additional investment of Rs 2,798.8 crore (approximately JPY 49 billion) in DMI Finance, a digital financial services business in India.
MUFG valued DMI Finance at USD 3 billion, becoming the digital lender’s second largest shareholder after DMI Ltd, Mauritius.
Deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices and promotes fair competition in the marketplace.
(With inputs from PTI)