Walmart Successfully Completes Deal to Acquire 77% Stake in Flipkart for USD 16 Billion

Walmart, the US-based retail giant today announced that it has successfully completed the deal to acquire Flipkart for USD 16 billion. Since the transaction is now complete, Walmart now holds a 77% stake in the Indian e-commerce major. Walmart’s investment includes USD 2 billion of new equity funding to help accelerate the growth of the Flipkart business. For the unaware, the Flipkart-Walmart deal was announced in May this year, and it’s the largest one so far in the Indian retail space. This is also Walmart’s biggest acquisition and will help it compete more aggressively with its US-based rival Amazon.

  • Make Telecom Talk My Trusted Source
  • Source of Google
  • Source of Google

walmart-acquire-flipkart

“With the completion of the investment, Walmart now holds approximately 77% of Flipkart. The remainder of the business is held by other shareholders, including Flipkart co-founder Binny Bansal, Tencent, Tiger Global and Microsoft Corp,” a statement said, according to PTI.

Flipkart’s existing management team will continue to lead the business. Walmart and Flipkart will retain their individual brands and separate operating structures in the country.

Sachin Bansal, who co-founded Flipkart with Binny Bansal in 2007, has exited the company after the deal. Also, SoftBank, which had invested USD 2.5 billion in Flipkart last year, has also exited the e-commerce firm, raking in about USD 4 billion from the deal.

Last week, fair trade regulator Competition Commission of India (CCI) gave its approval to the transaction despite opposition from various trade bodies, including Confederation of All India Traders (CAIT).

Mergers and acquisitions beyond a certain threshold require the approval of the CCI. The statement issued today said members from Walmart would join Flipkart’s Board, along with representation from existing investors Tencent Holdings and Tiger Global Management LLC as well as independent board members.