Facebook pays $5.7bn for 9.9% stake in Ambani’s Jio Platforms

The Competition Commission of India (CCI) today said it has approved social media giant Facebook's proposed acquisition of 9.99 percent stake in Jio Platforms, the digital arm of India's Reliance Industries, owned by Asia's richest man Mukesh Ambani, for 5.7 billion USD (Rs 43,574 crore).

The deal -- the single largest FDI in the technology sector in India -- was announced in April this year, under which Facebook had set up a separate entity, Jaadhu Holdings LLC, to make the investment.

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The CCI has approved "acquisition of 9.99 per cent stake in Jio Platforms by Jaadhu Holdings LLC", according to a tweet on CCI's verified Twitter account.

The deal would bring together JioMart, the e-commerce venture of Mukesh Ambani, and Facebook's WhatsApp platform to connect consumers with neighbourhood grocery stores.

WhatsApp, owned by Facebook, has over 400 million users in India while Jio has more than 388 million phone subscribers. Facebook has about 250 million users in India.

Jio Platforms was created in October last year to house the all-digital initiative of Reliance.

Deals beyond a certain threshold require the approval of the CCI which seeks to prevent unfair business practices and promoter fair competition in the market place.