CCI nod to MakeMyTrip, Ibibo Group merger

BENGALURU: The Competition Commission of India has approved the proposed merger of online travel firm MakeMyTrip’s Indian travel business with rival Ibibo Group, owned by South African media conglomerate Naspers.

Following this approval, nearly three months after the proposed merger was announced, MakeMyTrip on Friday said that it expects to close the transaction on or around January 31.

The deal, which marks the coming together of two of India’s largest travel booking portals, was first announced in October last year and was expected to be closed by the end of December. Earlier this week, MakeMyTrip had extended this to April 1.

The transaction, involving the largest consolidation deal in India’s internet sector, had resulted in Naspers becoming the biggest shareholder, owning more than a third of the combined entity. MakeMyTrip said the combined entity will comprise travel brands including MakeMyTrip, goibibo, redBus, Ryde and Rightstay, which together processed 34.1 million transactions during the financial year 2016.

The Nasdaq-listed company’s shares closed at $29 on Thursday, giving it a valuation of $1.51billion. Last month, MakeMyTrip had disclosed that it will issue shares, worth nearly $960 million, for this acquisition.