Amazon Seeks CCI Approval To Acquire Catamaran’s Shareholding In Prione
Just months after a mutual decision to discontinue their joint venture, Amazon India has approached the national competition regulator, the Competition Commission of India (CCI), to seek authorisation to acquire Narayana Murthy-led Catamaran Ventures' interest in Prione, which operates Cloudtail.
If CCI allows the acquisition, Amazon will become a 100 percent stake owner in Prione.
Prione Business Services was the joint venture between Amazon and NR Narayana Murthy's Catamaran.
In June 2014, Prione Business was established, and in August this year, the companies announced that they had decided not to continue with their partnership after May 2022.
“Prione Business Services Pvt. Ltd., the joint venture between Catamaran and Amazon, will be acquired by Amazon subject to requisite regulatory approvals. On August 09, 2021, the Partners had announced their decision to not continue the JV beyond the end of its current term of May 2022. Amazon will acquire Catamaran’s shareholding in Prione in compliance with applicable laws including all assets and liabilities," Amazon India and Catamaran said in a joint statement on Wednesday.
“The businesses of the Joint Venture shall continue under the leadership of the current management, and on receipt of regulatory approvals, the board of Prione & Cloudtail will take steps to complete the transaction in compliance with applicable laws," the companies said further.
The government tightened regulations for e-commerce marketplaces with foreign investments in 2018, prohibiting them to sell products from their group companies on their platforms. As a consequence, Prione Business Services was restructured.
While the firms did not provide specifics, insiders said Amazon's share in the company came down to 24 percent from 49 percent, following the restructuring.