Walmart, US retail giant possibly to crack a deal for acquisition of shares worth $12 billion from Indian e-commerce firm Flipkart and an agreement could be completed within a fortnight, according to media reports.
As per Bloomberg reports, all major stakeholders including Tiger Global Management and Japan’s SoftBank Group are enthusiastic on a deal with Walmart. It was earlier reported that the Japanese multinational company, who owns nearly one-fifth of Flipkart via its Vision Fund, was holding out for higher price.
Walmart will probably takeover 60-80 percent stake of Flipkart, whose approximate price will be roughly $20 billion at the upper-end, cited Bloomberg.
For now, it is unclear whether Flipkart Founders Sachin Bansal and Binny Bansal will step down after the deal.
Walmart, the world’s largest retailer and known for its superstores, has completed its due diligence on Flipkart and has wished-for buying a greater part of stake in the Indian company.
Separately, Walmart has for years tried to enter the retail market in India, valued at $672 billion according to a 2017 CARE Ratings estimate. But, the American company has been limited to a ‘cash-and-carry’ wholesale business in the country, amid tough restrictions on foreign investment. It presently functions in 21 such stores across India.