The Walmart-Flipkart deal has been the talk of the town in the recent times. Flipkart’s board has approved an agreement to sell 75 per cent of the company to Walmart for $15 billion, this will be one of the biggest acquisitions in India, Flipkart may soon be acquired by Walmart Inc. as per latest reports. The deal, which will see the US retail giant buy 75 per cent of the Indian e-commerce company, was finally sealed on Thursday following months of negotiations. The deal may also see Flipkart founder and Executive Chairman Sachin Bansal exit the Bengaluru-based company, but nothing is clear on that matter as of now.
As per the proposed deal, SoftBank will sell its 20-plus stake that it holds in Flipkart. Google’s parent company Alphabet is also said to participate in the investment with Walmart and the deal is expected to be closed in 10 days.
Walmart is likely to acquire a 51% stake in Flipkart and, through the sale of shares by other investors as well, maybe even over 80%! Unless Soft Bank springs a surprise, Flipkart as we know it may never be the same again. Walmart and Amazon, who lost out in the other big market that is not America, meaning China, are duking it out to control the retail space in India. Why? Because online retail in India is expected to touch 200 billion dollars in value in 2020.