India regulator CCI has approved the acquisition of 42.5% of outstanding voting shares in MakeMyTrip by Chinese OTA giant Ctrip, according to a tweet by the CCI released on Tuesday.
Ctrip holds nearly half of the Indian online travel firm after this acquisition.
Ctrip has acquired the additional stake in MakeMyTrip in a swap deal with South Africa-based Naspers which received a 5.6% stake in Ctrip in exchange. The transaction values MakeMyTrip at over USD 2.57 billion based on Ctrip share price early on Tuesday.
Ctrip’s earlier stake in MakeMyTrip came through a USD 180 million investment in convertible bonds in January 2016.
Deep Kalra, chairman and group CEO of MakeMyTrip had in April said that the company 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.
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