August 01, 2024 – Recent reports from The Times of India reveal that Apple’s opposition has stalled the planned acquisition of a majority stake in the Indian operations of Chinese smartphone giant vivo by the Tata Group.
According to informed sources, vivo, facing pressure from the Indian government to localize its operations, had hoped to sell a 51% stake in its Indian subsidiary to the Tata Group, thus achieving “Indianized” operations. However, Apple’s dissatisfaction with the deal, coupled with the Tata Group’s consideration of its partner’s views, has brought the negotiations to a halt.
Last month, rumors circulated that the Tata Group was in negotiations to acquire a majority stake in vivo’s Indian subsidiary. It was reported that vivo had been seeking a local partner after the Indian government pushed for domestic companies to be involved in its operations, including manufacturing and distribution. The Tata Group expressed interest in the deal but had not finalized it.
Sources indicate that Apple’s opposition was a key factor in stalling the plan. “For Apple, any deal between its key partner, the Tata Group, and vivo represents cooperation with a competitor. This could potentially lead to a breakdown in negotiations between Tata and vivo. Currently, the likelihood of (Tata) reconsidering (the acquisition) is very low.”
In summary, the Tata Group, which serves as Apple’s manufacturing partner in India, was in negotiations to acquire a majority stake in vivo’s Indian subsidiary. However, due to Apple’s opposition, the plan has been thwarted, creating a significant conflict of interest. As a result, vivo continues to operate in India as a Chinese company.
