Flipkart gets CCI's approval to acquire eBay India

Flipkart and eBay India deal has got the nod of Competition Commission of India (CCI), according to a tweet by the fair trade regulator.

Besides, CCI has also approved eBay Singapore's subscription of compulsorily convertible preference shares (CCPS) issued by Flipkart, said the CCI tweet.

The transaction involves 100 per cent acquisition of eBay India’s share capital by Flipkart along with CCPS of the company by eBay Singapore, as per the notice submitted to the regulator.

The deal goes back to April this year, when the India ecommerce major raised $1.4 billion funding, its biggest fundraising till date, from Tencent Holdings Ltd, Microsoft Corp and online marketplace eBay Inc.

During this time, as part of the fundraising, eBay invested $500 million in Flipkart for a stake in the company. In exchange, eBay would merge its India operations with the Bangalore-based ecommerce firm.

"The two companies have also entered into an exclusive agreement in which they will jointly pursue cross-border trade opportunities to make eBay's global inventory accessible to more India consumers," eBay had said in April.

eBay.in will continue to be an independent entity in the country.