Amazon offers to buy 60 percent in Flipkart

Amazon looking to outbid Walmart in Flipkart deal

Amazon looking to outbid Walmart in Flipkart deal

Amidst this, according to a report by Factordaily, Walmart has made a decision to pay a whopping $14.6 billion in cash and stock to acquire 73 per cent stake in the biggest e-commerce company in India. The company did not immediately respond to AFP's request for comment.

The acquisition of Flipkart has been a talk of the country that has kept the Indian e-commerce industry on its toes, but it seems that a deal has finally been finalized.

India is a fast-growing e-commerce market, now worth $27 billion and forecast to grow at 29.2 percent over the next four years, reaching $73 billion by 2022. "It is important for food safety", the source said.

Walmart shares closed 0.13 percent lower Thursday on the New York Stock Exchange, while Amazon stocks closed higher by 2.39 percent on Nasdaq. Flipkart and Amazon dominate the online shopping space in Asia's third-largest economy.

"Now with Walmart in the mix things are different", the source said. Flipkart was last valued at about Dollars 12.5 billion when it raised USD 2.5 billion from Masayoshi Son's SoftBank a year ago. "There is no deadline per se".

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United States retailer Amazon is Flipkart's largest online competitor in India, though Flipkart has the biggest market share. It will also be one the biggest acquisition deals by Walmart.

The deal will also see the exit of some of the largest investors in Flipkart. Krishnamurthy, who took over as CEO from Binny in January last year, is seen to have turned around the e-commerce major after two sluggish years when it ceded market share to Amazon under the leadership of Sachin. "It will be very hard for them to win India back if they miss this opportunity". Flipkart is registered as a public company with almost 145 entities as shareholders and it is, therefore, trying to narrow it down to 50, which is the maximum limit for a private limited company in India as well as Singapore.

Sales from Walmart International, which runs about 6,300 stores globally, stood at $118 billion in the fiscal year ended 2018, down almost 14 percent from 2014.

In an interview with Reuters on Tuesday, McKenna downplayed analyst criticism that the company has been slow to move in India.

Walmart's shares ended 1.22 percent lower at $86.34 on Wednesday.

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