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NEW DELHI: Naspers-owned Prosus NV, a Dutch-based technology investor, has terminated its $4.7 billion agreement to acquire payments provider BillDesk, a month after the deal between Prosus arm PayU and shareholders of BillDesk was cleared by the India’s competition watchdog.
“BillDesk shareholders are shocked. This was very last minute. A multinational corporation (MNC) has signed a binding contract in India and is walking away,” said a person directly aware of the development r on condition of anonymity. “We will explore what needs to be done contractually and legally against Prosus.”
While PayU had secured the approval of the Competition Commission of India (CCI) on 5 September, the deal’s closure was subject to several other clearances.
The completion of the deal was expected to have shored up PayU’s parent firm Prosus‘s total investments in India to about $12 billion. Naspers, which has invested over $6 billon in India’s technology sector since 2005, first announced the acquisition last August, paving way for one of the largest consolidations in India’s fintech sector.
However, a formal announcement was made later as part of its response to a show-cause notice issued by the CCI, to which was required to reply by August 2022. It filed a revised merger notification in April this year, addressing the competition regulator’s queries.
PayU said the acquisition is not likely to cause any considerable adverse effect on competition in India’s fintech sector owing to the highly competitive and dynamic nature of the markets.
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John Miller has been writing about science, gaming, and tech culture for over a decade. He’s a top-rated reviewer with extensive experience helping people find the best deals on tech and more.
