Walmart buys nearly 70% stake in Flipkart worth 15 billion dollars
The Deal between the country’s e-commerce website Flipkart and Walmart, the world’s largest retailer has reportedly been successful. It has been confirmed by SoftBank CEO Masayoshi Son.
Earlier, there was a possibility that the acquisition agreement between Wal-Mart and Flipkart would soon be possible. The deal is about $ 15 billion. Wal-Mart is talking about buying about 70 percent stake in Indian company. Flipkart and Amazon are currently in control of the $ 30 billion e-commerce market.
The deal was being said that Japan’s Softbank Group Corp and Tiger Global Management will sell their 20-20% stake in Flipkart. The value of Indian company can be valued at around $ 20 billion. The researcher CB Insights told Flipkart’s value last year about $ 12 billion. This deal will help Walmart to keep its foothold in the retail online market in India and they will want to compete with Amazon. However, Softbank spokesman said that he will not comment on the discussions and speculations.
Amazon had also offered to buy stake
Sources said Amazon also offered to buy 60 percent stake in Flipkart, but the company’s board of directors is in favor of Wal-Mart’s offer. Meanwhile, reports of Flipkart co-founder Sachin Bansal leaving the company are surfacing. Reports say that Bansal can leave the company by selling his 5 percent stake. However, it has not been confirmed yet. Sachin Bansal, along with Binny Bansal, founded Flipkart 11 years ago.
