The US retail Giant, Walmart has been in talks with Indian giant, Flipkart to acquire a controlling stake in the firm. The company aims to give tough competition to its big time rival, Amazon in the country. In the US, Walmart and Amazon are two of the most popular names in the industry. Now, to spread their wings in various markets around the world, the rivals are looking for some domestic giants to work with.
According to various reports, Walmart could complete the deal to buy a more than 51 per cent stake in Flipkart. The deal could be completed as early as next week. The US giant has been in talks with Flipkart for months, however the same was not confirmed by any giants till date. Today, new reports just came in which adds up more light to this particular deal.
The matter is completely private and hence there is no name revealed by the sources to spread out this new deal. Earlier, Flipkart was in talks to merge up with Amazon, however it didn’t happen. And now, the company is back on the headlines, this time with other US giant called, Walmart.
Flipkart Online Services Pvt’s all the investors are now on board with the Walmart as the giant has already made up the deal. According to Bloomberg’s report, tiger Global Management will sell nearly all its 20 percent stake in Flipkart, while SoftBank Group Corp. will offload a substantial part of its 20 percent-plus holding, the people said. Walmart will likely end up with 60 percent to 80 percent of Flipkart, valued at about $20 billion. The officials have said this in detail.
In this special deal, Walmart has completely declined to comment on the news. On the other hand, Flipkart has also not responded to the comments and to this deal when asked by various sources.
Industry insiders’ claim that, Walmart has got the potential to seal up this deal before Amazon. And as per the latest reports, it seems like the Walmart has already done the deal $12 Billion Plus. Of course, Walmart has to face out some regulatory hurdles to accomplish the deal.
On the other hand, Flipkart founders Sachin and Binny Bansal are also said to have favored Walmart. Amazon has its own platform in India with Amazon India without the support of any native giant. Amazon is doing really well in Indian market. Amazon is giving hand-to-hand competition to India’s own, Flipkart. Now, Flipkart is partnering with Walmart and as per this new deal, Walmart will be controlling the Flipkart in the future.