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FIPB approves Tesco FDI, Vodafone's India buyout plan

NewDelhi: The foreign investment regulator cleared a decision on Vodafone Group Plc's $1.6 billion plan to take full ownership of its local unit, Economic Affairs Secretary Arvind Mayaram said on Monday.

 FIPB approves Tesco FDI, Vodafones India buyout plan

Representational image. PTI

The deal needs final approval from the cabinet.

India allowed foreign companies in the telecommunications sector to raise their holdings to 100 percent from 74 percent in their Indian businesses in August.

Vodafone, which entered India in 2007 by buying Hutchison Whampoa's (0013.HK) local cellular assets in an $11 billion deal, directly and indirectly owns a combined 84.5 percent of Vodafone India, the country's No.2 telecoms company by users and revenue. Its direct holding in the unit is 64.4 percent.

The Foreign Investment Promotion Board, a unit of the finance ministry, has also approved Tesco Plc's proposal to invest $110 million to set up supermarkets in the country, Economic Affairs Secretary Arvind Mayaram said on Monday.

Earlier this month, Tesco became the first foreign supermarket operator to venture into India's $500 billion retail sector after announcing it had applied to buy a 50 percent stake in Tata Group's Trent Hypermarket .

Reuters

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Updated Date: Dec 21, 2014 01:26:23 IST

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