Flipkart Walmart deal HIGHLIGHTS: Walmart buys 77% stake in Flipkart for $16 billion

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Updated: May 9, 2018 5:20:06 PM

In the world’s largest e-commerce deal ever, Walmart on Wednesday announced to buy 77 percent stake in India’s online retailer Flipkart for $16 billion.

Walmart-Flipkart $15 billion deal, live blog flipkart dealWalmart will pick up a 71.06% stake for $15 billion. An official announcement is likely to be made today evening.

Flipkart Walmart Deal: In the world’s largest e-commerce deal ever, Walmart on Wednesday announced acquisition of 77 percent stake in India’s online retailer Flipkart for $16 billion. This is the biggest bet by the Bentonville company in the online space in India. It is the biggest foreign investment ever made by Walmart as it battles Amazon in the Indian e-commerce space. The deal has seen a lot of twists and turns with even Amazon Inc reportedly making a formal offer, and Flipkart preferring retail giant Walmart over Amazon. Subject to regulatory approval in India, Walmart will pay approximately $16 billion for an initial stake of approximately 77 percent in Flipkart, formally Flipkart Private Limited, the Walmart release said.

5.15pm: Krish Iyer, president and chief executive officer of Walmart India, will continue to lead that part of the cash-and-carry and fulfilment center business.

5.13 pm: While Walmart and Flipkart will leverage the combined strengths of both companies, they will maintain distinct brands and operating structures.

5.11 pm: With the investment, Flipkart will leverage Walmart’s omni-channel retail expertise, grocery and general merchandise supply-chain knowledge and financial strength, while Flipkart’s talent, technology, customer insights and agile and innovative culture will benefit Walmart in India and across the globe.

5.09 pm: “While eCommerce is still a relatively small part of retail in India, we see great potential to grow. Walmart is the ideal partner for the next phase of our journey, and we look forward to working together in the years ahead to bring our strengths and learnings in retail and eCommerce to the fore,” Binny Bansal said.

5.07 pm: “This investment is of immense importance for India and will help fuel our ambition to deepen our connection with buyers and sellers and to create the next wave of retail in India,” said Binny Bansal, Flipkart’s co-founder and group chief executive officer.

5.05 pm: “As a company, we are transforming globally to meet and exceed the needs of customers and we look forward to working with Flipkart to grow in this critical market. We are also excited to be doing this with Tencent, Tiger Global and Microsoft, which will be key strategic and technology partners,” Doug McMillon said.

5.02 pm: “India is one of the most attractive retail markets in the world, given its size and growth rate, and our investment is an opportunity to partner with the company that is leading transformation of eCommerce in the market,” said Doug McMillon, Walmart’s president.

5.00 pm: While the immediate focus will be on serving customers and growing the business, Walmart supports Flipkart’s ambition to transition into a publicly-listed, majority-owned subsidiary in the future.

4.55 pm: The remainder of the business will be held by some of Flipkart’s existing shareholders, including Flipkart co-founder Binny Bansal, Tencent Holdings Limited, Tiger Global Management LLC and Microsoft Corp.

4. 50 pm: Subject to regulatory approval in India, Walmart will pay approximately $16 billion for an initial stake of approximately 77 percent in Flipkart, formally Flipkart Private Limited.

4.45 pm: Walmart signs definitive agreement to be the largest shareholder in Flipkart. Walmart will buy 77% stake in Flipkart for about $16 billion.

4.15 pm: “What should I do? Well, I said it. I can’t take it back. So that’s it,” Softbank CEO Masayoshi Son quipped, according to a Bloomberg report. 

4.00 pm: “Oh, I see here that the Flipkart-Walmart deal isn’t fully confirmed at this point in time,”  Bloomberg quotes Softbank CEO Masayoshi Son as saying. “Yabai desune,” he added, which translates in Japanese roughly to “Oops” or “That’s not good.”

3.30 pm: The deal — expected to be among Walmart’s biggest ever in at least two decades, gives it greater access to an Indian e-commerce market, which is slated to grow to to $200 billion in the next ten years, according to a Morgan Stanley report.

3.00 pm: Masayoshi Son did not mention other terms of the Walmart takeover in the briefing on Wednesday, Bloomberg reported.

2.15 pm: Softbank CEO Masayoshi Son says that $2.5 billion Flipkart stake is now worth about $4 billion in deal, ET Now reported citing agencies.

2.00 pm: Softbank CEO Masayoshi Son confirms that Walmart formally agreed to buy Flipkart, ET Now reported qouting agencies.

1.30 pm: Carl Douglas McMillon, president and chief executive officer of Walmart, will arrive at the Embassy Tech Village headquarters of Flipkart in Bengaluru later today. He will also be accompanied by Walmart International’s Judith McKenna and CEO (commerce) Marc Lore, according to media reports.

1.00 pm: Flipkart co-founder Sachin Bansal is likely to sell his 5.5% stake in the company, CNBC TV18 reported quoting sources. 

12.30 pm: India’s tax authorities are keeping a close watch on Walmart’s acquisition of Flipkart. An Indian Express report had earlier indicated that if the deal goes through, a repeat of the infamous Vodafone tax case could be imminent.

12.05 pm: Earlier, Amazon.com had made a formal offer for picking up a controlling stake in Flipkart, however, major Flipkart investors reportedly preferred Walmart. This was due to lesser regulatory hurdles due to Walmart’s lack of India presence as compared to Amazon, according to a Bloomberg report.

11.30 am: Walmart will pick up a 71.06% stake for $15 billion, according to a report by ET Now. The deal will be announced later today.

11.15 am: CNBC TV18 reported citing sources that Walmart CEO Doug McMillon will sign definitive agreement with Flipkart shortly.

11.00 am: Google’s parent Alphabet will get a roughly 15 percent stake in the online marketplace for about $3 billion, according to Reuters.

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