CCI nod to Amazon's acquisition of Prione Business
Premium- Prione Business Services was formed in 2014 and was coming up for renewal on May 19, 2022
Antitrust agency Competition Commission of India (CCI) on Wednesday approved Amazon's acquisition of full stake in Prione Business Services -- its joint venture firm with Catamaran.
In August last year, Amazon and NR Narayana Murthy's Catamaran had announced that they will not continue their joint venture, Prione Business Services, beyond May 2022.
The businesses of the JV will continue under the leadership of the current management and on receipt of regulatory approvals, while the board of Prione and Cloudtail will take steps to complete the transaction in compliance with applicable laws.
Prione Business Services was formed in 2014 and was coming up for renewal on May 19, 2022. Amazon and Catamaran had not disclosed the reason behind the decision.
In 2018, the government had introduced stricter norms for e-commerce marketplaces with foreign investments, mandating that they do not sell products of their group companies on their platforms. Following that, Prione Business Services was restructured.
While the companies did not divulge details, news agency PTI had earlier reported that Amazon's holding came down from 49% to 24% stake post the restructuring.
MINT PREMIUM See All
Earlier, domestic traders body CAIT had opposed the deal, claiming that Amazon's plan to acquire Prione Business Services will be a violation of foreign direct investment policy.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!