The Competition Commission of India (CCI) has approved GRT Jewellers (India) Private Limited’s proposed acquisition of a 74.12% stake in listed jewellery retailer Tribhovandas Bhimji Zaveri Limited (TBZ).
In a press release on October 13, the competition regulator said a detailed order would follow. The approval clears a key regulatory hurdle, but does not mean the transaction has been completed.
GRT Jewellers announced on August 31 that it had signed a share purchase agreement with TBZ’s promoters to acquire 4,94,59,775 equity shares for a consideration of up to ₹1,033.71 crore. The deal is subject to applicable closing conditions.
GRT has also proposed an open offer to acquire an additional stake of around 26% in TBZ under Securities and Exchange Board of India (SEBI) regulations. An open offer gives eligible public shareholders an opportunity to sell their shares to the acquirer under the applicable terms.
Founded in 1864, TBZ, also known as TBZ The Original, operates 37 stores across India and sells gold, diamond and other jewellery. It also has manufacturing facilities.
GRT Jewellers, founded in 1964, operates 68 stores across India and one in Singapore, according to its August 31 announcement. Its product range includes gold, silver, diamond and platinum jewellery.
The proposed acquisition would give GRT a majority stake in TBZ, adding the latter’s retail network and established brand to its operations. The final outcome will depend on the completion of the transaction and the applicable conditions.