Tata Group To Acquire Majority Stake in Smartphone Maker Vivo

The Tata Group is in advanced talks to acquire a majority stake in the Indian subsidiary of Vivo, a Chinese smartphone company controlled by the BBK Group, according to individuals familiar with the situation.

While the talks have moved significantly, with a focus on valuations, no final agreement has yet been achieved. Vivo is seeking a larger valuation than the Tata Group is currently offering, as per sources. However, the Tata Group is still interested in the potential takeover.Vivo has being investigated by Indian authorities for alleged tax evasion and breach of the Prevention of Money Laundering Act (PMLA).

Oppo, another smartphone company owned by China's BBK Group, is also reportedly in negotiations with local firms about divesting its Indian operation. The Indian government intends to ensure that any joint venture between a Chinese smartphone business and an Indian partner has at least a 51% ownership held by the domestic firm. The government also wants the joint venture to have local leadership and distribution.

In a similar development, Bhagwati Products, the firm behind the Micromax brand, has acquired Vivo's manufacturing facilities in Greater Noida. Bhagwati Products has begun employing and will shortly begin making smartphones for Vivo through its original design manufacturing joint venture with Huaqin, which is now awaiting regulatory certification.