Apple disrupts overseas acquisition involving Indian partner

Apple is a technology company. It specializes in creating products. But as a global force in the world, it can also get caught up in international drama. Today, a new report details one such situation playing out that involves India, China, and competitor Vivo, with Apple disrupting a key acquisition.

Apple and Vivo create potential conflict of interest

The Times of India reports:

Tata group’s bid to acquire a majority stake in Chinese smartphone giant Vivo’s India business may have stalled after objections by Apple, sources told TOl. Sources said Vivo was looking to offload 51% stake in its Indian subsidiary to the Tata group as part of its efforts to ‘Indianise’ operations in the face of govt pressure.

However, Apple was not comfortable with the transaction as its devices are being manufactured by the Tata group in Bangalore. “This has been one of the key reasons that scuttled the plan,” a source said. “For Apple, any deal of the Tata group, its key manufacturing ally, with Vivo would have meant a partnership with a competitor. This perhaps led to the talks breaking down between Tatas and Vivo,” the source said, adding that a “re-think looks highly unlikely ‘as of now’.”

It sounds like a very complicated situation. On one hand, the Indian government pressures foreign-run companies like Vivo to localize its ownership. The China-based Vivo seeks to do so, selling a majority stake of its Indian operations to an India-based group, Tata.

All good so far, right?

But then Apple enters the picture.

Tata holds subsidiaries that are Apple partners, handling manufacturing for the company in India. So if Tata acquired a majority stake in Apple’s competitor, Vivo, that would create an apparent conflict of interest.

Thus, in part because of Apple, the Indian government doesn’t get what it wants. Vivo continues to operate in India with majority Chinese ownership.

Overall, it seems like a mess. One that could, if the whole behind-the-scenes story came out, could make for a great Apple TV+ series in the future.

For now though, all we know is that Vivo needs to seek a new buyer for its Indian operations. Preferably one that isn’t a major smartphone company that could be negatively impacted.