CCI approves merger of MakeMy Trip and ibibo group
The Competition Commission of India (CCI), country’s business fair practice authority body, has approved the merger of two of the largest online travels portals in the country i.e. MakeMy Trip and Goibibo group. Announced in October 2016, online travel firm MakeMyTrip had agreed to buy Ibibo Group’s travel business in India in an all-stock deal, creating the country’s largest online travel firm worth $1.8 billion. After the merger, all Ibibo group brands such as Goibibo, RedBus, Ryde and Rightstay will come under the umbrella of MakeMy Trip.
While MakeMy Trip, a US stock exchange listed firm, recorded revenues of INR1,925 crore during FY16, of which over 80% of the business came from India, Goibibo clocked INR365 crore of revenues during the same period of time.
The founder of both Ibibo and MakeMy Trip issued a joined statement stating that “As separate entities until now, we had been competing with each other; but would now come together to further dominate this highly under-penetrated online Indian travel space. This market offers immense headroom to grow and provide value and delight to our customers. Our next and immediate step is to launch projects of integration in all the areas and ensure completion of the first wave in a period of 8 to 10 weeks.”