New Delhi: The Competition Commission of India (CCI) has approved the acquisition of 42.5% of outstanding voting shares in MakeMytrip by Hong Kong based travel service provider Ctrip, according to a tweet by the CCI released on Tuesday. Ctrip holds nearly half of the homegrown online travel service provider after this acquisition.
“CCI India approves acquisition of additional outstanding voting securities of MakeMyTrip Limited by.com International Limited,” tweeted the CCI from its official handle.
Ctrip has acquired the additional stake in MMT in a swap deal with South Africa-based Naspers which received a 5.6% stake in Ctrip in exchange. The transaction values MMT at over $2.57 billion based on Ctrip share price early on Tuesday. Ctrip announced the transactionon April 26. Ctrip’s earlier stake in MMT came through a $180 million investment in convertible bonds in January 2016.
Deep Kalra, chairman and group CEO of MMT had in April said that MMT would look to leverage the investment by Ctrip to benefit from the growth potential in travel and tourism between India and China.
In an earlier summary of the proposed transaction the CCI had stated that Ctrip primarily generates revenues from end users in China and that it has negligible India related operations.