Walmart plans to increase Flipkart stake to 85% within a year
Walmart plans to increase its current 77 percent stake to 85 percent within the year, the company said in SEC filings on May 11.
Walmart completed its acquisition of Flipkart last week after months of talks. The American-based business now owns Flipkart but has stated several times in official announcements that Flipkart will retain its name and much of its management. However, Walmart may well further increase its stake in the e-commerce platform.
In order to acquire an even greater stake in Flipkart, Walmart could invest a further three billion US dollars. Neither Walmart nor Flipkart have disclosed the price paid for the acquisition.
The effects of the Flipkart deal are already being felt in the Indian business world. Flipkart’s Group CEO, Binny Bansal, stated in an official announcement that “this is a watershed moment for start-ups in India.” However, there has also been backlash to the deal and some Indian trader and farmer groups have been vocal about their discontent.
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