The first discussion regarding this happened between Flipkart and Walmart in 2016 and now as reported by various media agencies, Walmart has concurred to buy 75% share of Flipkart at a price of $15 billion or £11 billion. The deal should give each a fortune of about $1 billion, although that status may be shortlived as the pair may have to pay 20 per cent capital gains tax on any shares they sell in the company, tax experts say.
In a statement issued on Wednesday, Walmart said it would eventually look at the public listing of Flipkart as a majority-owned subsidiary though the company did not share a timeline for this.
eBay has said it intends to sell its holdings in Flipkart and end a strategic relationship. The RSS economic wing called it Walmart's backdoor entry into India, and traders' association CAIT argued the deal would "vitiate Indian e-commerce".
The deal hasn't gone down well with the tens of millions of small store owners who for years used political muscle to slow the arrival of global retailers. "And it fits right in with our strategy", Judith McKenna, Walmart's worldwide chief executive officer, said in a phone interview.
Despite its size and global clout, Walmart has found it necessary to forge alliances in its battle against Amazon, which a year ago bought Whole Foods Market to gain a foothold in the U.S.
However, Flipkart's board reportedly believed regulatory hurdles could ensue in an Amazon-Flipkart deal since Amazon is India's No. 2 online retailer and Flipkart's primary competitor. The company said Krish Iyer, president and CEO of Walmart India, will continue to lead that part of the business. So far it had been handicapped by Indias retail policy that does not allow overseas companies to sell directly to consumers (except in wholesale cash-and-carry segment). It now operates 20 wholesale clubs in India that serve small businesses.
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Import growth had been expected to pick up to 16 percent, compared with 14.4 percent one month earlier. The US side demanded that China reduce its trade surplus with the US to the tune of US$200bn by 2020.
Today, the Bengaluru-headquarted company has multiple offices across the country.
In 2011, Flipkart domiciled to Singapore to woo foreign investors to fund rapid growth. Binny Bansal stays as the group CEO and also gets the additional role of the executive chairman.
The Flipkart Group includes fashion portals Myntra-Jabong, payments unit PhonePe and logistics firm Ekart.
During a recent investor call, Amazon CFO Brian Olsavsky had mentioned that the company would continue to invest in India with both sellers and customers here, even though as the USA e-tailing giant had registered a loss of United States dollars 622 million from global operations in the first quarter of 2018.
But despite Amazon's recent efforts to address this opportunity, it continues to lag behind Flipkart.
But instead of competing with Flipkart, Walmart has essentially taken over the company.
But I have long argued that Walmart is not going to win its battle with Amazon by taking baby steps or simply imitating Amazon's playbook.