Walmart, Flipkart Deal Close to Being Finalized

Walmart, Flipkart Deal Close to Being Finalized

The U.S. e-commerce giant has offered to purchase a 60% stake in Flipkart.

A recent ET report said Flipkart has set aside $400 million to buy back shares from small investors as it seeks to regain its private limited company status in Singapore.

As Walmart-Flipkart deal enters final stages, it seems like Amazon is not backing down from the deal either.

CNBC TV-18 reported that Amazon's bid is likely to be on par with Walmart's.

Amazon's offer to acquire a majority stake in Flipkart comes at a time when rival Walmart is close to completing a $12 billion deal to pick up an equivalent amount of stake in the Indian firm.

Flipkart didn't respond to an email seeking comment.

More news: USA trade shortfall narrows sharply in March, capital goods exports higher
More news: CDC reports one death from E. coli outbreak linked to romaine lettuce
More news: David Fizdale Reportedly Agrees To Become New York Knicks Head Coach

CNBC-TV18, the Indian affiliate of business news channel CNBC, was first to report on Amazon's offer. Moreover, a longdrawn process could also create uncertainty among employees and vendors of Flipkart, the sources said. Notably, SoftBank which holds about 21 per cent stake in the Flipkart has given a green signal to it and slated to bag $4 billion exit.

However, investors and the founders of Flipkart are reportedly more in favour of a deal with Walmart.

Joining the fray would send a signal that Amazon is less confident of closing the gap with the company founded by Sachin Bansal and Binny Bansal, the unrelated software engineers who briefly worked for the Seattle-based outfit before starting Flipkart in 2007. In contrast, a Form 1 notification, which is what competing companies file when their combined market share is below 15%, requires an approval process of three months. The Amazon bid, the person said, is pegged at $22-23 billion. The buzz is that the American company could bag four of the 10 seats on the board but the top management is not expected to change.

This news is coming when Walmart is investing a big amount in Flipkart to Buy 52% -86% share in Flipkart.

SoftBank, Flipkart's largest shareholder, was pushing other investors to wait for a rival offer for Flipkart from Amazon.

In an effort to fix its worldwide performance, Walmart in January appointed Chief Operating Officer Judith McKenna to run its global unit and has indicated it will focus on its core North American markets and growth markets like China and India.

Related Articles

  • Half of 'caravan' asylum seekers in US, Sessions puts…

    Half of 'caravan' asylum seekers in US, Sessions puts…

    The crossing, the nation's busiest, processed about 50 asylum-seekers a day from October through February, suggesting the wait will be short.
    Xbox One Sales Achieve +15% Year-On-Year, Microsoft Reveals

    Xbox One Sales Achieve +15% Year-On-Year, Microsoft Reveals

    The Verge wanted to know how many Xbox One consoles have been sold recently, but Microsoft continued to stay quiet on the matter. We are continuing to look at engagement as our key metric for success and are no longer reporting on total console sales ...
    Tiger will use new irons at Wells Fargo this week

    Tiger will use new irons at Wells Fargo this week

    Playing in the morning wave, Phil Mickelson carded a 1-over 72 and is in a tie for 59th along with Rickie Fowler and reigning U.S. Molinari proved his upside by finishing runner-up to Justin Thomas at Quail Hollow in the PGA Championship previous year .
  • Trump Seizes On Judge's Pointed Questions To Bash Mueller's Team

    Both cases revolve around Manafort's work from 2005 through 2014 for former Ukrainian president Viktor Yanukovych. Manafort has also been indicted in federal court in Washington, D.C.
    Withdrawing US Troops from South Korea 'Not no the Table'

    Withdrawing US Troops from South Korea 'Not no the Table'

    We'll be announcing it soon", Trump told reporters Friday from the White House South Lawn before departing for Dallas. Preparations for the Trump-Kim meeting have gathered further momentum since the Korean summit.
    NBA players react to another epic performance from LeBron James

    NBA players react to another epic performance from LeBron James

    And like I said, it's the first team to win four. "I'm burnt right now", James said after Cleveland's Game 7 victory over Indiana. In the first round against IN , the Cavs shot 32.3% on three-pointers after a solid 37.2% during the regular season.
  • China's Q1 smartphone shipments fall below 100 mln: IDC

    China's Q1 smartphone shipments fall below 100 mln: IDC

    Samsung shifted 78 million handsets and has 22 per cent of the market, while Apple sold 52.2 million and has 15 per cent. Oppo , on the other hand, has seen a decline of 7.5 percent year-over-year and it now has a market share of 7.1 percent.
    Janhvi Kapoor drapes Sridevi's saree and this will moist your eyes!

    Janhvi Kapoor drapes Sridevi's saree and this will moist your eyes!

    In fact, this was her mother's saree that she chose to drape for the ceremony, as revealed by designer Manish Malhotra. She truly deserves it and she has been around for nearly 50 years and done nearly 300 films ( MOM was her 300th film).
    Cvs Health Corporation (CVS) Holder Oak Associates LTD Decreased Its Position

    Cvs Health Corporation (CVS) Holder Oak Associates LTD Decreased Its Position

    The Manufacturers Life Insurance Company lifted its stake in shares of CVS Health by 149.8% in the 4th quarter. US stocks couldn't hang on to an early gain and finished mostly lower Monday as technology companies slipped.
  • Uprooted… Macron's oak tree for Trump vanishes

    Uprooted… Macron's oak tree for Trump vanishes

    The French president's office says there was nothing mysterious about the disappearance of tree and that it was put in quarantine. Marines helped block a German offensive in fierce fighting that earned them their "Devil Dogs" nickname.
    Marouane Fellaini hints at Manchester United stay

    Marouane Fellaini hints at Manchester United stay

    Fellaini came off the bench to score the victor against Arsenal at Old Trafford on Sunday. Manchester United nearly secured second spot with a late goal from Fellaini.
    Scouts organizations react to Boy Scouts name change

    Scouts organizations react to Boy Scouts name change

    That includes 23 new merit badges focusing on outdoors and STEM (science, technology, engineering and math). Boy Scouts of America announced this week a revamp of not only its program, but its service philosophy.