{"id":239807,"date":"2018-04-23T07:41:21","date_gmt":"2018-04-23T05:41:21","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=239807"},"modified":"2018-04-23T07:41:21","modified_gmt":"2018-04-23T05:41:21","slug":"walmart-close-to-12-billion-plus-deal-for-flipkart","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/technology\/239807\/walmart-close-to-12-billion-plus-deal-for-flipkart\/","title":{"rendered":"Walmart close to $12 billion-plus deal for Flipkart"},"content":{"rendered":"
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Walmart Inc is close to finalizing a deal to buy a majority stake in India\u2019s leading e-commerce company for at least $12 billion and may complete the agreement in the next two weeks, according to people familiar with the matter.<\/p>\n

All the major investors in Flipkart Online Services Pvt are now on board with the Walmart purchase, after an earlier debate over whether to sell to Amazon.com Inc, said the people, asking not to be named because the matter is private.<\/p>\n

Tiger Global Management will sell nearly all its 20% stake in Flipkart, while SoftBank Group Corp will sell a substantial part of its 20 percent-plus holding, the people said. Walmart will likely end up with 60% to 80% of Flipkart, which will be valued at about $20 billion, they said.<\/p>\n

Among the issues that still need to be resolved are what happens to Flipkart\u2019s founders and who will lead Flipkart after the purchase, they said. The amount each existing investor sells and the size of Walmart\u2019s final stake still need to be finalized, they said. It\u2019s also possible that terms will change or the talks will fall apart.<\/p>\n

If completed, the deal would give Walmart a substantial foothold in an emerging market of 1.3 billion people.<\/p>\n

The Bentonville, Arkansas-based company is the world\u2019s largest retailer, but it has struggled against Amazon as consumers increasingly migrate to online commerce. India is the next big potential prize after the US and China, where foreign retailers have made little progress against Alibaba Group Holding Ltd.<\/p>\n

Walmart declined comment. Flipkart didn\u2019t immediately respond to requests for comment.<\/p>\n

Flipkart\u2019s board recently met to discuss the competing proposals and decided Walmart could close a deal more easily. Walmart faces fewer regulatory hurdles because it has no online retail presence in the country now, while Amazon is the second-largest e-commerce player and Flipkart\u2019s primary rival.<\/p>\n

Flipkart founders Sachin and Binny Bansal are also said to have favored Walmart.<\/p>\n

A Walmart deal has been discussed since at least last year. Amazon founder Jeff Bezos has committed $5.5 billion to India and his country chief, Amit Agarwal, has made progress by adapting the site to local conditions.<\/p>\n

A $20 billion pricetag would be substantially higher than Flipkart\u2019s valuation of about $12 billion last year. It is already the most valuable startup in India.<\/p>\n

Tiger and SoftBank are currently the startup\u2019s largest shareholders, followed by South Africa\u2019s Naspers Ltd. If the deal goes through, it would be the biggest in the nascent history of Indian e-commerce.<\/p>\n

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Read: Naspers to reduce its stake in Tencent<\/a><\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Walmart Inc is close to finalizing a deal to buy a majority stake in India\u2019s leading e-commerce company for at least $12 billion and may complete the agreement in the next two weeks, according to people familiar with the matter.<\/p>\n","protected":false},"author":59,"featured_media":6395,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9878],"tags":[7073,2819],"class_list":["post-239807","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-flipkart","tag-walmart"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/239807","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=239807"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/239807\/revisions"}],"predecessor-version":[{"id":239809,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/239807\/revisions\/239809"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/6395"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=239807"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=239807"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=239807"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}