NEW DELHI: Taking the long-pending-billion-dollar deal a step closer to competition, fair trade regulator Competition Commission of India (CCI) approved Tata Group companies and promoter Tata Sons to buy to buy NTT Docomo’s 21.63 per cent stake in Tata Teleservices. Besides Tata Sons, the group companies include Tata Steel, Tata Industries, Tata Communications and Tata Power.
The application comes less than a month after Delhi High Court allowed Tata Sons to pay NTT Docomo a $1.17 billion arbitration award upon termination of their telecom joint venture. In its proposal, the group companies said the buyout will not affect or change the competitive landscape of the Indian telecommunications market.
Docomo has been fighting Tata Sons over the right to sell its stake in the Indian wireless venture for at least half the original value, as per the terms of the 2009 agreement.
In April 2014, Docomo decided to sell its entire 26.5 per cent stake in Tata Teleservices. Under the agreement, Docomo had the right to sell its stake at a fair market price or 50 per cent of the acquired price, amounting to `7,250 crore, whichever was higher.
But, the Tatas couldn’t find a buyer and said they couldn’t pay the Japanese company due to RBI rules. In February this year, both companies reached a settlement and sought the court’s permission to transfer funds.