Walmart’s Acquisition of Flipkart Likely to Go Through for $15 Billion

Flipkart’s board of directors have finally taken the audacious step and decided that they are ready to sell 75% stake of the company to the US-based Retail giant Walmart for $ 15 billion. This is definitely a big stride from any American company towards investment in an Indian tech company. Anonymous people tipped off on the news to Bloomberg, saying that Google’s parent company Alphabet would also likely back Walmart on this deal and that SoftBank Group Corp. would sell all of its 20-plus percent stake in Flipkart via an investment fund for this deal to go through. The entire transaction would be valued at around $20 billion they said. The tipsters also did not forget to add that even though a final decision can be expected on this deal within ten days, the terms of the deal could still change and in fact, they also added that the entire plan for the acquisition might also crumble down.

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If this deal goes through successfully, it would mean a defeat for the American e-commerce giant Amazon, which has also been trying to get hold of Flipkart’s leadership in an attempt to solidify its position in the Indian online retail sector as the sole winner. It is still a known fact that Amazon stays as the second largest e-commerce company in India after Flipkart. After this decision by the board members of Flipkart, it is much more likely that Walmart is going to win the deal. If Walmart assumes the leadership of Flipkart in India, Amazon might be in for some trouble from a tough competitor.