$4.7-bn BillDesk deal: Prosus-backed PayU gets show-cause notice from CCI

Changes to deal structure possible, say experts

India’s antitrust regulator has shot off a show-cause notice to Prosus-backed PayU India on its proposed $4.7-billion acquisition of Indian payment gateway, BillDesk, deepening its scrutiny of the deal and raising the possibility of modifications to ensure the combined entity does not undermine competition.

The 30-page notice from the Competition Commission of India (CCI), sent at the end of July, seeks a detailed explanation from PayU on why a ‘Phase-II’ investigation into the proposed deal should not be launched, said two persons privy to the development.

A Phase-II investigation is a thorough exercise that can lead to remedies involving modifications