Prosus-backed PayU’s acquisition of Billdesk–one of the largest deals in domestic fintech–seems delayed as the Competition Commission of India (CCI) has asked for additional information about the deal announced in September 2021.
The companies have said the acquisition is subject to CCI approval. Sources said that the CCI asking for additional information is regular practice.
“Refilings of merger notifications are not uncommon–the CCI has in approximately 30 instances in the past directed that a revised merger notification be re-filed. These transactions were approved following the CCI’s review of the revised filings. For instance, combinations involving Linde Aktiengesellschaft and Praxair, Dow Chemical Company and DuPont; General Electric and Baker Hughes; and Bayer and Monsanto,” said a lawyer on condition of anonymity.
A spokesperson for PayU said: “The Competition Commission of India has only directed that a revised merger notification be filed with additional information in order to review the proposed transaction involving the combination of PayU India and IndiaIdeas.com Limited (“BillDesk”). PayU India will shortly re-file its merger notification, which will include the additional information requested.”
“We firmly believe that the proposed combination of PayU India and BillDesk will have significant pro-competitive benefits and will strengthen the Indian digital payments market which is fully regulated by the Reserve Bank of India.” said the spokesperson.
The acquisition will help PayU, which operates in more than 20 markets, become an online payment provider globally by total payment volume (TPV). The combined entity will have a total of 4 billion transactions annually.
The deal is also significant for Prosus as its investments in India over the last five years touched $10 billion. The transaction builds on the previous successful acquisitions by PayU in India, including CitrusPay, Paysense, and Wibmo.
Source: Business-Standard