CCI turns down request for approval for Birla-Pantaloon deal

CCI turns down request for approval for Birla-Pantaloon dealThe Competition Commission of India (CCI) has said that the application for the approval of Aditya Birla Group's bid to acquire a majority stake in the Pantaloons retail chain.

A spokesperson for CCI said that the application was not accepted only on technical grounds and asserted that the deal was not blocked due to any violation of competition law. The deal hit a roadblock when the CCI asked the two companies to get an approval from their board of directors for the acquisition.

"The deal is yet to be approved by the boards of the two companies, so they need to come back to the commission once they approve it, and the case will be reconsidered," the spokesperson said.

Kishore Biyani-owned Pantaloon Retail (India) Ltd was looking to reduce its debt level through the deal, which would also give it access to Birla-owned brands like Allen Solly, Louis Philippe and Peter England. The two companies have only signed an interim memorandum of understanding (MoU) for agreeing on the details of the acquisition.

The two parties will now have to submit a new proposal with the approval from the board of directors of both the companies to the CCI for regulatory approval.