Walmart, the world’s largest retailer, has completed the acquisition of majority stake in India’s leading e-commerce marketplace, Flipkart. In a joint statement issued on Saturday, Walmart and Flipkart announced the completion of the $16-billion deal that would see the US giant taking ownership of 77 percent stake in the Indian firm. The remaining 23% stake will be held by Flipkart co-founder Binny Bansal, Tencent, Tiger Global, and Microsoft. Flipkart’s financials will also be reported as part of Walmart’s International business segment, the company said in a statement.
The deal, which is the largest of its kind globally, was announced in May and received the nod from India’s competition watchdog earlier this month. Its closure sets the stage for India to become the latest battlefield in the fight for dominance between Walmart and its biggest rival, Amazon.
“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.”
As reported earlier, Flipkart’s existing management team, including CEO Kalyan Krishnamurthy will continue to lead the business. Both Walmart and Flipkart will also retain their unique brands and operating structures in India.
Investors Tencent and Tiger Global will remain on Flipkart board along with co-founder Binny Bansal and independent board members and will be joined by new members from Walmart. Flipkart co-founder Sachin Bansal had quit the company in May, selling his 5.5% stake for about $1 billion.