Walmart Inc completes deal to acquire 77% stake in Fipkart; to invest USD 2 bn

Walmart has sealed the deal with Flipkart. The US retail giant announced today that it has completed the $16 billion investment to acquire approximately 77% in Flipkart, making Walmart the largest shareholder in the Flipkart Group. Flipkart’s financials will now be reported as part of Walmart’s International business segment.“Walmart and Flipkart will achieve more together than each of us could accomplish separately to contribute to the economic growth of India, creating a strong local business powered by Walmart,” said Judith McKenna, president and CEO of Walmart International. “Our investment will benefit India by providing quality, affordable goods for customers, while creating new skilled jobs and opportunities for suppliers.”Flipkart’s existing management team which includes CEO Kalyan Krishnamurthy, will continue to lead the business. Moreover, both Walmart and Flipkart will retain their unique brands and operating structures in India.Tencent and Tiger Global will remain a part of Flipkart’s board in addition to independent board members, and will be joined by new members from Walmart. This acquisition has provided an exit to early investors including Accel Partners and Naspers along with cofounder Sachin Bansal. The remainder of the business is held by other shareholders, including Flipkart cofounder Binny Bansal, Tencent, Tiger Global and Microsoft Corp.“By combining Walmart’s omni-channel retail expertise, supply-chain knowledge and financial strength with Flipkart’s talent, technology and local insights, we are confident that together we can drive the next wave of retail in India,” said Binny Bansal, chief executive of the Flipkart Group. Walmart’s $16 billion investment includes $2 billion of new equity funding to help accelerate the growth of the Flipkart business. The Bentonville-based company had announced its intent to acquire Flipkart on May 9 and in less than three months received an approval by the Competition Commission of India (CCI) on August 8. This investment now brings the battle of Amazon and Walmart on to Indian grounds.

from The Economic Times https://ift.tt/2BvvI4q