India’s biggest e-commerce deal to be sealed by Walmart as early as next week
MUMBAI: Walmart Inc could seal a deal to buy a more than 51% stake in Indian online marketplace Flipkart as early as next week, two sources familiar with the matter said on Friday.
For months, the US retail giant has been in talks with Flipkart to acquire controlling stake, as it looks to take on rival Amazon.com Inc head-on in India. India’s ecommerce market is tipped to grow to $200 billion in a decade.
One of the sources said on Friday that the stalemate between SoftBank and Walmart has ended. It was not immediately clear though, whether SoftBank had agreed to sell some shares in Flipkart.
It was earlier reported that Walmart completed due diligence on Flipkart and had made a proposal to buy 51% or more for between $10 billion to $12billion.
Some of Flipkart’s main investors – US hedge fund Tiger Global Management, South African tech investor Naspers and venture capital firm Accel – are likely to take a full exit as Walmart purchases their shares, as per sources.
All sources declined to be named as the talks are not public. Flipkart, SoftBank did not immediately respond to requests for comment, while a representative for Walmart in India declined comment.