CCI clears Amazon Asia's 76% stake acquisition in Frontizo

Amazon Asia-Frontizo deal: Fair trade regulator, the Competition Commission of India (CCI), has approved Amazon Asia-Pacific Holdings' proposal to acquire a 76 per cent stake in Frontizo from Zodiac Wealth Advisors LLP.

Frontizo's wholly-owned subsidiary, Appario Retail, engages in both retail (B2C) and wholesale (B2B) sales in India, offering products to customers on the Amazon India Marketplace. Appario Retail is a joint venture between Amazon and Zodiac Wealth Management, with Zodiac holding a 76 per cent stake, Amazon Asia Pacific Holdings holding 23 per cent, and Zaffre LLC holding a 1 per cent share.

"The proposed combination involves the acquisition by Amazon Asia-Pacific of 76 per cent of the equity shares in Frontizo from Zodiac Wealth Advisors LLP (Zodiac)," the CCI stated in a release.

Additionally, the CCI has cleared the acquisition of Appario Retail's entire business by tech Retail Pvt Ltd (CRPL) as a going concern, and the purchase of a 1 per cent shareholding by Haverl in New Trends Commerce Pvt Ltd (NTCPL). tech Retail is a seller on the Amazon India marketplace, while Haverl is engaged in investment activities. CEPL, the parent entity of NTCPL, is also the parent entity of CRPL, which engages in both B2C and B2B sales on the Amazon India marketplace.

In separate releases, the CCI announced its approval of Sanlam Emerging Markets (Mauritius) Ltd (SEMM)'s proposal to acquire a 16.12 per cent stake each in Shriram LI Holdings and Shriram GI Holdings. Shriram LI Holdings Pvt Ltd (SLIH) is the promoter and holding company of Shriram Life Insurance Company Ltd (SLIC), with a 74.56 per cent stake in SLIC. Shriram GI Holdings Pvt Ltd (SGIH) is the promoter and holding company of Shriram General Insurance Company (SGIC), holding a 66.64 per cent stake in SGIC.

SEMM, incorporated in Mauritius, is a wholly-owned subsidiary of Sanlam Ltd, South Africa, and is part of the Sanlam Group.

Transactions exceeding certain thresholds require approval from the CCI, which monitors unfair business practices and promotes fair competition in the marketplace.

(With PTI inputs.)