Published: Wed, April 04, 2018
Money | By Armando Alvarado

Amazon may counter Walmart's bid to buy rival Flipkart

Amazon may counter Walmart's bid to buy rival Flipkart

Inc may submit an offer to buy Indian e-commerce firm Flipkart, which is now in talks with Walmart Inc for a stake sale, local daily Mint reported, citing sources.

Walmart is in talks to buy a stake of over 40 per cent in Flipkart, a direct challenge to Amazon in Asia's third-largest economy. In India, both Amazon and Flipkart are engaged in a tough fight in the e-commerce space.

"The deal has to go through the Competition Commission of India because Flipkart happens to be the top-rated e-commerce company in the market, where a sort of duopoly exists, with other players like Snapdeal on the periphery", says Dr. Vikas Kathuria, a competition law expert and assistant professor at the Bennett University, to PCMag India.

In the ongoing saga of Walmart's bid to purchase a majority stake in Indian retail giant Flipkart, a new twist has emerged. Flipkart investors are also planning to sell all of their shares in the Flipkart-Walmart deal.

Amazon is said to have held exploratory talks with Flipkart. The company invested Rs 1,680 crore in its Indian unit past year as part of its commitment to invest $5 billion to expand its local business. Apart from these two companies, Google also has made overtures towards acquiring Flipkart according to the report.

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The deal with Walmart was expected to aid Flipkart in fighting against Amazon, which committed an additional investment of $5 billion towards an aggressive India expansion.

Since its launch in 2007, Flipkart has become the flag bearer of Indian startups.

The negotiations between Walmart and Flipkart are in the final stages, Amazon has just bowled a googly.

Most recently, it raised a massive $2 billion funding round, which also included a $1.4 billion commitment from SoftBank, which is now one of the majority shareholders in Flipkart. The deal, if it goes through, will value Flipkart somewhere around $10 to $15 billion.

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