Fair trade regulator Competition Commission of India (CCI) on Wednesday approved Facebook's bid to acquire 9.99 per cent stake in Reliance Industry Limited's (RIL) telecom arm Jio Platforms. As per documents, Facebook will acquire the stakes via Jaadhu Holdings LLC, a new entity. CCI informed about the approval via a tweet.
@CCI_India approves acquisition of 9.99% stake in Jio Platforms by Jaadhu Holdings LLC.— CCI (@CCI_India) June 24, 2020
As a result of the approval, Facebook's entity Jaadhu Holdings has now become the largest minority shareholder in the company.
On April 22, Jio announced an investment of Rs 43,754 crore from the social media giant, thus kicking off a series of investments into the company. Since then, Reliance Industries, has sold 24.70 per cent stake in Jio Platforms for Rs 1,15,693.95 crore via 11 such deals.
Along with the stake sale, Jio Platforms, Reliance Retail and Facebook's app-based messaging service WhatsApp have also entered into a commercial partnership agreement to accelerate Reliance Retail's new commerce business on the JioMart platform using WhatsApp to support small businesses.