US retail giant Walmart will buy a majority stake in India’s largest e-commerce company Flipkart, according to the head of SoftBank, a major stakeholder in the Indian firm. US retail giant Walmart will buy a majority stake in India’s largest e-commerce company Flipkart, according to the head of SoftBank, a major stakeholder in the Indian firm. “Last night, (they) reached a final agreement and it was decided that Flipkart will be sold to America’s Walmart,” said SoftBank CEO Masayoshi Son, whose firm owns a 20 per cent stake in Flipkart, in a PTI report.
The world’s largest retailer Walmart Inc is set to spend almost $15 billion to buy a stake of approx 70% in Flipkart in the deal. According to Reuters, the deal is likely to value Flipkart roughly at $18-20 billion, is likely to be the US retail giant’s biggest acquisition. The deal will include a primary investment of up to $3 billion by Walmart against fresh equity to ramp up Flipkart’s size and scale.
With the fresh deal, Walmart would be looking to take on rivals Amazon outside its home turf in India. Even Google’s parent company Alphabet would also purchase approximately 5-15 percent stake in Flipkart.
Here are few things you need to know about ‘mother of all e-commerce deals’:
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(With Agency Inputs)
