Sources have revealed that Tata Group's attempt to purchase a 51% stake in Vivo's India business has hit a major snag due to concerns raised by Apple.
Vivo, a Chinese smartphone manufacturer, had been looking to sell a majority share of its Indian operations to Tata in response to increasing governmental pressure to localize ownership.
However, Apple's reservations about the deal have put the brakes on the negotiations. Tata Group, which manufactures Apple devices at its Bangalore facility, could potentially find itself in a conflict of interest if it partnered with Vivo, a direct competitor to Apple. This scenario has led to the talks between Tata and Vivo stalling, with insiders suggesting that a resolution seems unlikely at this time.
The Indian government has been encouraging foreign companies like Vivo to "Indianise" their operations, pushing for greater local ownership. While Vivo sought to comply by negotiating with Tata Group, the involvement of Apple has complicated matters. Tata's existing partnership with Apple means that any deal with Vivo would pose a competitive threat, thus hindering the Indian government's goal of reducing Chinese control over local operations.
As a result, Vivo remains under Chinese majority ownership, and the Indian government's push for greater local control faces a significant setback due to the intertwined interests of major tech players like Apple and Tata.
