After Walmart-Flipkart, CAIT May Approach CCI Against More-Amazon-Samara Deal

After Walmart-Flipkart, CAIT May Approach CCI Against More-Amazon-Samara Deal

SUMMARY

The Samara Capital-Amazon consortium is set to buy More at an enterprise value of $581.4 Mn (INR 4,200 Cr)

CAIT secretary Praveen Khandelwal said once the contours of the deal are available, they will approach the Competition Commission of India

CAIT is also opposing Walmart’s recent acquisition of Flipkart and had even called for Bharat Bandh on September 28

After months of protests against the acquisition of Indian ecommerce company Flipkart by global retailer Walmart, the Confederation of All India Traders (CAIT) has now shifted its target to another global deal happening in India. The traders’ body plans to file a complaint with the Competition Commission of India (CCI) against Samara-Amazon’s acquisition of the Aditya Birla Group’s food and grocery retail chain More.

CAIT secretary Praveen Khandelwal reportedly said that international companies such as Amazon would slowly make inroads in offline retail through such deals and would eventually “kill” small and medium retailers.

“The contours of the deal are still not clear. Once we have full details, we will approach the Competition Commission of India,” Khandelwal said.

The organisation has been opposing foreign direct investment in retail for long, saying it could kill small businesses in India.

The CAIT has been vehemently opposing Walmart’s recent acquisition of Flipkart and had even called for Bharat Bandh on September 28. “Walmart has already set foot in India. Now Amazon is also getting into brick-and-mortar retail. Tomorrow, Alibaba would also come,” said Khandelwal.

It must be noted that Amazon and Samara Capital are reportedly acquiring supermarket chain More at an enterprise value of $581.4 Mn (INR 4,200 Cr), with Samara Capital acquiring 51% of the company and Amazon buying the remaining stake.

However, until Thursday evening, the acquisition of More wasn’t notified to the competition regulator. “This is a reportable transaction as it crosses the INR 350 Xr assets and INR 1,000 Cr annual turnover benchmark. Once the filing is made, the summary of the deal will be made available online,” a CCI official said.

Notably, after the notification, the CCI has to give its prima facie view on the transaction within 30 days and a final decision within 180 days.

It must also be noted that Amazon is said to be in talks with Kishore Biyani’s Future Retail as well as Spencer’s Retail for the acquisition of their operations. With so many deals lined up in the country, how long will CAIT object to such moves to ward off competition for small traders?

[The development was reported by ET.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

After Walmart-Flipkart, CAIT May Approach CCI Against More-Amazon-Samara Deal-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

After Walmart-Flipkart, CAIT May Approach CCI Against More-Amazon-Samara Deal-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

After Walmart-Flipkart, CAIT May Approach CCI Against More-Amazon-Samara Deal-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

After Walmart-Flipkart, CAIT May Approach CCI Against More-Amazon-Samara Deal-Inc42 Media
After Walmart-Flipkart, CAIT May Approach CCI Against More-Amazon-Samara Deal-Inc42 Media
You’re in Good company