Walmart set to acquire India's Flipkart with 73% stake for $14.6 billion
TL;DR
- Walmart is gearing up to buy Flipkart in a $14.6-$16 billion deal, according to a recent report.
- Walmart would gain a 73% share in the company, and most of its initial investment is expected to go towards a grocery supply chain.
- Alphabet Inc. may be contributing $3 billion to the investment.
Walmart Inc. is seeking to acquire Flipkart with a 73% stake in the company, according to a report from FactorDaily. The US retail conglomerate is tipped to spend at least $14.6 billion, and as much as $16 billion, in the cash-and-stock buyout of the Indian e-commerce company.
“Everything has been finalized… the papers have been signed by both the parties,” a source told FactorDaily, following negotiations yesterday.
The sources indicated that Walmart had valued Flipkart at between $20 and $22 billion. Google’s parent company Alphabet Inc. is said to be participating in the deal with a $3 billion investment.
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Flipkart’s CEO Kalyan Krishnamurthy, and other top-level staff, are expected to maintain their roles.
Walmart would maintain a focus on the grocery market, said the sources, suggesting that almost 50% of Walmart’s initial investment would be funneled into building a food and grocery supply chain.
According to estimates, India had 60 million online shoppers in 2016 — 14% of those with internet access in the nation. It’s anticipated that more than 50% of those with internet access will shop online by 2026.
If the Walmart deal goes through, however, Amazon and Flipkart would remain competitors — which would likely be the best result for consumers.
We’ve reached out to Flipkart and Walmart on the matter and will update this article should we receive any information.
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