Walmart, Tesco and Carrefour may be barred from entering India, but Mickey, Minnie and Goofy have been given the all clear to increase their presence on the subcontinent.
In a week that saw FDI in retail die a quick, painful death, the government announced the approval of three large deals – proving that, perhaps, India wasn’t as closed off as the past few weeks of protests would suggest.
On Wednesday night, the cabinet committee on economic affairs announced it had approved Walt Disney Company’s increase of its stake in UTV Software Communications, one of Bollywood’s biggest entertainment groups, from 48 per cent to 100 per cent, according to a statement.
By 1:47pm, shares in UTV were up 3.38 per cent, compared to a 2.26 decrease in the Bombay Stock Exchange’s benchmark Sensex index.
Disney now plans to delist the company from Indian exchanges, making it a local subsidiary of the US group, the FT reported in July, when Disney’s bid for the stake was announced.
The deal, according to the CCEA’s statement, will bring in around $1.6bn in FDI inflows.
More power to the Magic Kingdom. And speaking of which:
The CCEA on Wednesday also approved of two separate deals, both in the energy sector. Alstom of France is to acquire equity in Grid Equipments Limited and in Energy Grid Automation Transformers and Switchgears India, worth $870m and $397m, respectively.
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