Advertisement

Business

Updated on: Wednesday, December 22, 2021, 03:32 PM IST

Amazon to acquire full stake in JV Prione Business Services

Amazon and NR Narayana Murthy's Catamaran had announced that they will not continue their joint venture, Prione Business Services, beyond May 2022./ Representational image | Photo: Pixabay

Amazon and NR Narayana Murthy's Catamaran had announced that they will not continue their joint venture, Prione Business Services, beyond May 2022./ Representational image | Photo: Pixabay

Advertisement

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.

(With inputs from PTI)

(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Published on: Wednesday, December 22, 2021, 03:32 PM IST
Advertisement