Walmart to buy 73% of Flipkart for $14.6 billion.
Alphabet to invest $3billion.
SoftBank will sell its more than 20% stake as part of the deal.
The Board of Indian e-commerce major Flipkart has approved its deal with Walmart for $15 billion (about Rs 1 lakh crore). As part of the deal, Walmart Inc.-led group will get a 75 percent stake in Flipkart. Under the proposed deal, Softbank Group Corp. has agreed to sell its full stake (more than 20%) in Flipkart. However, no information has yet been formally disclosed in this case. News Agency Bloomberg has given this information.
Another news coming from this development, Google’s parent company, Alphabet Inc. could also join Walmart in this investment. However, the final decision, in this case, will be taken in the next 10 days. Things are not yet clear on the nature of the deal.
From this deal, Wal-Mart has won a big victory over another American company Amazon. Amazon has been trying to acquire Finkalart for a long time. But the board of the FPCL finally gave final approval to the deal with Walmart.
After this deal, Amazon will be its primary competitor as it is the No. 2 e-commerce player in India after Flipkart. This will also help Walmart in succeeding the regulatory approval. Once the deal is final, Walmart will be crowned as the biggest e-commerce player in the country of nearly 1.3 billion people. Reputation in the company’s online market will also increase.
Walmart realizes very well that India is the most important market after America and China. However, in China, foreign companies have been competing toughly against Alibaba. So neither SoftBank nor Flipkart have responded to how they see this scenario.