Apple's Opposition Halts Tata Group's Plan to Acquire Vivo's Indian Business

TapTechNews July 31, Apple is currently shifting its focus to emerging markets such as India. But as a global giant, it is inevitable to be involved in international disputes.

The Times of India reported today that Tata Group's plan to acquire a majority stake in the Indian business of Chinese smartphone giant vivo has stalled due to Apple's opposition.

According to sources, as the Indian government puts pressure on foreign companies such as vivo to achieve localized operations. vivo hopes to sell 51% of the equity of its Indian subsidiary to Tata Group to ease the government's pressure and thus achieve 'Indianized' operation. But Apple is not satisfied with this transaction, and Tata, as a partner, has to consider its opinion as well.

TapTechNews reported last month that there were rumors that the Indian Tata Group was in talks to acquire a majority stake in vivo's Indian subsidiary. Allegedly, after the Indian government promoted domestic companies to participate in its operations (including manufacturing and distribution), vivo has been looking for a local partner, and Tata Group is very interested in this transaction, but it has not been finalized yet.

According to sources, Apple's opposition is one of the key reasons that killed the plan. For Apple, any transaction between its key partner Tata Group and vivo means cooperating with a competitor. This may lead to the breakdown of the negotiations between Tata and vivo. Currently, the possibility of (Tata) reconsidering (the acquisition) is extremely low.

In simple terms, Tata Group belongs to Apple's partner in India and is responsible for assembling and manufacturing products for India. Therefore, if Tata Group insists on acquiring a majority stake in the Indian subsidiary of Apple's competitor vivo, it will have a significant conflict of interest with Apple. Therefore, due to Apple, India's acquisition plan for vivo has failed, and vivo is still operating in India as a Chinese company.

Related Reading:

News that Tata Group is in talks to acquire a majority stake in vivo's Indian subsidiary