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Deal sealed: Softbank CEO confirms Walmart buying controlling stake in Flipkart

09 Mai 2018

Dougs meeting with Walmart India employees is expected Thursday morning, a day after the announcement of the transaction, before he proceeds to meet the Flipkart staffers.

Speculation is rife SoftBank plans to sell some of its stake in Indian e-commerce company Flipkart to USA retailer giant Walmart.

2- As part of the deal, Sachin Bansal, who is the co-founder the Flipkart, is leaving the company. The deal would be a triumph over rival Amazon Amazon has been trying to take control of Flipkart with a competing offer.

Flipkart is sold. It has been sold to Walmart, which is acquiring the Indian e-commerce company after valuing it for $ 20 billion.

The Walmart logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 1, 2018. The company's stock was already down 13 percent this year through Tuesday's close. After the deal is concluded, FlipKart and Walmart India will remain distinct brands.

Walmart is likely to bring its managerial expertise, although the existing leadership in Flipkart is expected to stay.

Walmart's investors reacted negatively to news of the retail giant's Flipkart buyout on Wednesday, wiping away $10 billion worth of Walmart's market capitalization, as investors punished the stock in early morning trading on the New York Stock Exchange (NYSE). Currently, Amazon.com holds 27 percent of Indias $30 billion e-commerce market.

"We've been looking at this business for some time".

"The ecommerce fight ahead should be less about market share than about growing the market manifold". "And it fits right in with our strategy", Judith McKenna, Walmart's global chief executive officer, said in a phone interview.

Walmart's bid to buy controlling stake in Flipkart is being viewed as an attempt to challenge Amazon's booming retail business across the world.

Reuter reported citing the sources that Google's parent company Alphabet is likely to partner Walmart for the deal in which Walmart to get 60% stake, while Alphabet will acquire around 15% ownership of Flipkart. This is also said to be Walmart's biggest deal ever. Companies such as Flipkart and Ola have proved that they can withstand competition from global behemoths such as Amazon and Uber. Also, a golden opportunity to rebuild its online reputation. Amazon aggressively expanding in India Amazon has invested $5.5 billion in India. It had acquired that stake for an investment of $2.5 billion a year ago. In late 2016, the company put Rs 13.8 billion into Amazon Data Services and previous year also invested Rs 3.82 billion in Amazon Pay (India).

The combined entity's manufacturing footprint covers five continents with products sold in over 150 nations with a stronger presence in the US, India, Asia, South Africa, CIS & Russia and Latin America.

Walmart executives said they were particularly interested in PhonePe, Flipkart's mobile payments app, along with its fashion sites Myntra and Jabong. Foreign investment regulations have thus far prevented the Arkansas-based retailer from opening stores in India, restricting it to operating 21 wholesale distribution outlets. The deal, probably the biggest in the e-commerce space, was confirmed by Softbank CEO Masayoshi Son on Wednesday.

The merger consolidated Vedanta's position as one of the worlds largest diversified natural resources companies, with world-class, low-priced assets in metals and mining and oil and gas. Merging Asda with the British retailer J Sainsbury Plc will retain 42 percent stake in the combined company for Walmart.

Deal sealed: Softbank CEO confirms Walmart buying controlling stake in Flipkart