Walmart has made a firm bid to buy about 75 per cent stake in the Indian e-commerce company Flipkart. The size of the deal is reported to be around $15 billion, according to newspaper and agency reports.
The bid effectively thwarts Amazon’s attempts to pick up controlling stake in the Indian retailer. International agencies said that the board of Flipkart Online Services has approved a Walmart’s bid to buy 75% stake for $15 billion.
ALSO READ: Microsoft, Amazon, Hindustan Lever most attractive employer, says survey
Under the proposed deal, SoftBank, is expected to sell it’s 20-plus percent stake in Flipkart and Google-parent Alphabet Inc. is likely to participate in the investment with Walmart. The deals is likely to be finalised within 10 days and terms could still change, reports said.
Earlier this week, Flipkart bought back $350 million worth of shares from its investors as it seeks to convert its Singapore-incorporated company to a private limited firm, in a move that could ease the way in for a new strategic investor, regulatory filings show.
Both Walmart and Amazon want to have a share of India’s retail e-commerce pie. Earlier this week, television channels had reported that Amazon, which is Flipkart’s biggest rival in India, had made a formal offer to buy 60 percent of Flipkart and that also proposed a $2 billion breakup fee to convince Flipkart to discuss its offer.
Flipkart, together with its fashion units Myntra and Jabong, controls nearly 40 percent of India’s online retail market, while Amazon is a close second with a 31 percent share, according to data from research firm Forrester.