Question : CCI (Competition Commission of India) approved Facebook’s purchase of a stake in Jio Platforms for
(a) Rs43,574crore
(b) Rs 32,000 crore
(c)Rs 25,000 crore
(d) None of the above
Answer : (a)
Related facts
Context
- The Competition Commission of India has recently (June, 2020) approved acquisition of 9.99 per cent stake in Jio Platforms by Jaadhu Holdings.
- Investment/Acquisition amount
Acquisition amount of 9.99% stake in Jio Platforms is Rs 43,574 crore.
Significance
- The deal will strengthen the social media company’s presence in its largest market and help Reliance Industries Ltd (RIL) pare debt.
- The regulatory approval came about two months after the two companies signed a deal that was touted to be the largest investment for a minority stake by a technology company anywhere in the world.
- It was also said to be the largest foreign direct investment (FDI) in the technology sector in India.
- The deal may open up the debt-laden telecom sector for other technology and Internet players.
Jaadhu Holdings
- Jaadhu is an indirect wholly owned subsidiary of Facebook.
- It is a newly incorporated company for med in March this year under the laws of the State of Delaware in United States.
JioPlatforms
- It is a subsidiary of Reliance India Limited.
- Jio Platforms houses RIL’s telecom business under Reliance Jio Infocomm, the large stin the country with nearly 400 million subscribers, besides other digital properties and investments.
Recent Investments in JioPlatforms
- Facebook was the first of 10 global entities that are buying a total 24.70% stake in Jio Platforms for Rs 1.16 lakh crore.
- These investments, along with Rs 53,124 crore from a rights issue, are helping Mukesh Ambani achieve his aim of making RIL net debt free.
- The other nine investors include Abu Dhabi’s two largest sovereign investment arms, Abu Dhabi Investment Authority and Mubadala, along with private equity firms Silver Lake, Vista Equity Partners, General Atlantic, KKR, TPG, L Catterton and Saudi Arabia’s Public Investment Fund.
By — Pankaj Pandey
Link:
https://m.economictimes.com/tech/internet/cci-okays-facebooks-investment-in-jio-platforms/articleshow/76561345.cms
http://newsonair.nic.in/Main-News-Details.aspx?id=39215