E-commerce major Amazon on Wednesday said it will acquire Prione Business Services – its joint venture firm with Catamaran, subject to requisite regulatory approvals.
In August, Amazon and NR Narayana Murthy’s Catamaran had announced that they will not continue their joint venture, Prione Business Services, beyond May 2022.
“Prione Business Services Pvt Ltd – the joint venture between Catamaran and Amazon – will be acquired by Amazon subject to requisite regulatory approvals…Amazon will acquire Catamaran’s shareholding in Prione in compliance with applicable laws including all assets and liabilities,” Amazon said in a statement on Wednesday.
The businesses of the JV will continue under the leadership of the current management and on receipt of regulatory approvals, the board of Prione and Cloudtail will take steps to complete the transaction in compliance with applicable laws, it added.
Prione Business Services was formed in 2014 and was coming up for renewal on May 19, 2022. Amazon and Catamaran had not disclosed the reason behind the decision.
In 2018, the government had introduced stricter norms for e-commerce marketplaces with foreign investments, mandating that they do not sell products of their group companies on their platforms. Following that, Prione Business Services was restructured.
While the companies did not divulge details, sources had said Amazon’s holding came down from 49 per cent to 24 per cent stake post the restructuring.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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E-commerce major Amazon on Wednesday said it will acquire Prione Business Services – its joint venture firm with Catamaran, subject to requisite regulatory approvals. In August, Amazon and NR Narayana Murthy’s Catamaran had announced that they will not continue their joint venture, Prione Business Services, beyond May 2022. “Prione Business Services Pvt Ltd – the joint venture between Catamaran and Amazon – will be acquired by Amazon subject to requisite regulatory approvals…Amazon will acquire Catamaran’s shareholding in Prione in compliance with applicable laws including all assets and liabilities,” Amazon said in a statement on Wednesday. The businesses of the JV will continue under the leadership of the current management and on receipt of regulatory approvals, the board of Prione and Cloudtail will take steps to complete the transaction in compliance with applicable laws, it added. Prione Business Services was formed in 2014 and was coming up for renewal on May 19, 2022. Amazon and Catamaran had not disclosed the reason behind the decision. In 2018, the government had introduced stricter norms for e-commerce marketplaces with foreign investments, mandating that they do not sell products of their group companies on their platforms. Following that, Prione Business Services was restructured. While the companies did not divulge details, sources had said Amazon’s holding came down from 49 per cent to 24 per cent stake post the restructuring.(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.) Dear Reader, Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance. We, however, have a request. As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed. Support quality journalism and subscribe to Business Standard. Digital Editor