The Competition Commission of India (CCI) has granted its approval to the Rs 1,500 crore Flipkart-Aditya Birla Fashion and Retail Ltd (ABFRL) deal. The agreement will be helping the Walmart Inc-owned e-tailer consolidate its position in the apparel business.
CCI said in a tweet, “Commission approves acquisition of a 7.8 percent minority stake in Aditya Birla Fashion and Retail Ltd by Flipkart Investments Private Ltd.”
The Flipkart-ABFRL deal was announced last October. This agreement will help Aditya Birla Fashion cut its debt and expand into new apparel categories. It will also give Flipkart a significant edge over Amazon.
With this agreement, Flipkart will work closely with Aditya Birla Fashion for the sales and distribution of its brands. Flipkart is also operating India’s largest online fashion marketplace Myntra.
Kalyan Krishnamurthy, CEO of Flipkart Group, had said in October, “Through this transaction with ABFRL, Flipkart will work towards making available a wide range of products for fashion-conscious consumers across different retail formats.”