Flipkart- Walmart deal: All you need to know
Flipkart- Walmart deal: All you need to know
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NEW DELHI: The board of Flipkart Online Services Pvt has permitted a contract to sell about 75 per cent of the company stakes to a Walmart Inc.-led group for approximately $15 billion, according to the sources. This is a massive bet by the American retailer on worldwide expansion.

SoftBank Group Corp. will sell the entire 20-plus per cent stake under the proposed deal. These stake values holds in Flipkart through an investment fund at a valuation of roughly $20 billion.

Google-parent Alphabet Inc. is expected to participate in the investment with Walmart, said one of the sources.

A final pact is expected within 10 days, though terms could still change and a deal isn’t confirmed, sources added.

The deal would seal a Walmart victory over Amazon.com Inc., which has been trying to have power over Flipkart with a competing offer.

Flipkart’s board at last decided a deal with Walmart is more expected to succeed regulatory approval because Amazon is the No. 2 e-commerce operator in India behind Flipkart and its primary competitor. Amazon is out of the running unless Walmart hits unforeseen trouble.

If finished, the deal will offer Bentonville, Arkansas-based Walmart a foremost position in the growing market of 1.3 billion people and a chance to remake its reputation online. The world’s largest retailer has struggled alongside Amazon as consumers rise their spending on the internet.

 

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