The Reliance Jio Facebook deal has been officially cleared by the Competition Commission of India (CCI). Facebook’s Jaadhu Holdings LLC had acquired 9.99 percent in Jio Platforms for an investment of Rs 43,574 crore on 22 April 2020. The antitrust watchdog reviews deals to prevent the misuse of data.
“The proposed combination envisages acquisition of approximately 9.99% stake in Jio Platforms Limited (Jio Platforms) by Jaadhu Holdings LLC (Jaadhu),” said CCI. A detailed order of the CCI regarding this announcement will be issued.
Jaadhu Holdings LLC formed in March 2020 under the laws of the State of Delaware, United States is a newly incorporated company and an indirect wholly-owned subsidiary of Facebook. The investment made by Facebook valued Jio Platforms at Rs 4.62 lakh crore pre-money enterprise value ($65.95 billion, assuming a conversion rate of Rs 70 to a US Dollar).
“Jio Platforms is a company organised and existing under the laws of the Republic of India, and a subsidiary of RIL. Jio Platforms owns (directly or indirectly) and operates digital applications and holds controlling investments in certain technology-related entities. Jio Platforms also holds 100% of the issued and outstanding share capital of Reliance Jio Infocomm Limited (RJIL). RJIL is a public limited company incorporated in India, and is a licensed telecommunications operator, providing telecommunications services to users across the country,” said a statement from CCI.