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Home industry retail Walmart now owns 77% of Flipkart
Retail
CIO Bulletin
2018-08-21
In the world of retail, competition never ceases to exist and if there is competition there’s always an acquisition around the corner. Walmart has completed its Flipkart acquisition finally. The retail heavyweight after months of negotiations has bought almost 77% stakes in India’s largest e-commerce retailer for $16 billion. This makes the deal the world’s largest e-commerce acquisition.
The move has faced some local opposition who will be holding protests later this month but the deal is all but done. The companies will continue to work as separate entities but Flipkart’s earnings will be reflected in Walmart’s at the end of the next quarter. The retail giant said that it will “support national initiatives and will bring sustainable benefits in jobs creation, supporting small businesses, supporting farmers and supply chain development and reducing food waste.”
Although Walmart has acquired a majority in the Indian company, the management will remain the same. Tencent holdings and Tiger Global Management LLC will still be the board leading the company. Walmart in its press release said: “The board will work to maintain Flipkart’s core values and entrepreneurial spirit while ensuring it has strategic and competitive advantages.”
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