The Competition Commission of India (CCI) has approved the $4.7 billion acquisition of payment gateway company BillDesk by online payments major PayU, the antitrust regulator said in a tweet on Monday evening.
This comes after a year-long wait for Prosus-owned PayU, which had to answer several questions from the regulator over the past year since the transaction was officially announced in August 2021.
A Business Standard report last month said the CCI had sent a show cause notice to PayU India as it scrutinized the deal. ET had reported in February this year that the CCI had sought more information about the deal from PayU.
The deal was delayed as the competition watchdog sought more information about the $4.7 billion buyout of BillDesk by PayU India.
Last year in August, global consumer internet group and technology investor Prosus NV announced that an agreement has been reached between PayU and the shareholders of BillDesk to acquire BillDesk for $4.7 billion.
The acquisition, will see PayU, the payments and fintech business of Prosus, which operates in more than 20 high-growth markets, become one of the leading online payment providers globally by total payment volume (TPV).
The deal will bring Prosus’s cumulative investment in Indian tech to more than $10 billion. Prosus CEO had then said, “Payments and fintech is a core segment for Prosus, and India remains our number one investment destination.”
The deal, which is the second-largest buyout in India’s online sector after Walmart’s $16 billion acquisition of e-commerce giant Flipkart in 2018, will involve the merger of the country’s two biggest payment gateway players and securing clearance from the Competition Commission of India (CCI ) is important.
CCI has sought more information about the deal and its implications from PayU, the people cited above told ET. PayU filed a revised merger notification in April this year after CCI made its original filing invalid for lack of adequate information.