The Competition Commission of India (CCI) has approved the government’s sale of stake in Tata Communications to the Tata group.
Formerly known as VSNL or Videsh Sanchar Nigam Ltd, Tata Communications was privatised in 2002 when Tata group bought a controlling stake.
Panatone Finvest, a subsidiary of Tata Sons, will buy the 26.12% stake from the government in the latest deal.
After the deal, Tata group's stake in Tata Communications will go from 48.87% to 74.99%.
Tata Communications is a facilities-based service provider.
In India, it is engaged in international long-distance services - voice; national long-distance services - voice; undersea cable systems; internet service provider (ISP); and others.
CCI said that the proposed deal will not lead to any change in the competitive landscape.
