Walmart officialises acquisition of 77 percent stake in Flipkart
US-based retail giant Walmart Inc has stated that it has now officially completed the acquisition of 77 percent stake in leading Indian e-commerce firm Flipkart.
Last week, The Competition Commission of India, the country’s antitrust regulator had approved Walmart Inc’s acquisition of Flipkart.
Betonville, Arkansas-based Walmart had announced in May it was acquiring about 77 percent of Flipkart for roughly $16 billion, the biggest deal in India’s e-commerce sector.
Commenting on the completion of the deal, Judith McKenna, president and CEO of Walmart International said in a statement said: “Our investment will benefit India by providing quality, affordable goods for customers while creating new skilled jobs and opportunities for suppliers… we are delighted to learn from, contribute to and work with Flipkart to grow in India, one of the fastest-growing and most attractive retail markets in the world.”
Binny Bansal, Flipkart co-founder and group chief executive officer, added, “By combining Walmart’s omni-channel retail expertise, supply-chain knowledge and financial strength with Flipkart’s talent, technology, and local insights, we are confident that together we can drive the next wave of retail in India.”
With the completion of the investment, Walmart now holds approximately 77 percent of Flipkart. Even though Flipkart’s existing management team will continue to lead the business going forward Flipkart’s financials will be reported as part of Walmart’s International business segment.
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