Walmart expects “timely approval” from authorities for its USD 16 billion deal to acquire Flipkart, a top company official said.
Walmart expects “timely approval” from authorities for its USD 16 billion deal to acquire Flipkart, a top company official said. The company is awaiting approval from fair trade regulator CCI, where its mega deal to acquire 77 per cent stake in leading e-commerce player Flipkart is pending. “This should happen in reasonable time… we are expecting timely approvals,” said Walmart India President and CEO Krish Iyer. He further said:”Basic approval is from the Competition Commission of India (CCI) and its already in progress.” When asked how soon the company expects to complete the transaction, Iyer said,”We have not put any timeline for that. It is basically based on the law.”
The company has already engaged counsel to pitch its case before the fair trade regulator. In May this year, Walmart had announced a mega deal to pick up 77 per cent stake in Flipkart to strengthen presence India and take on Amazon. Iyer said after the completion of the transaction, both Walmart and Flipkart would continue to run as independent companies.
“Flipkart is an independent business and we have invested in it. It would continue to run as a separate business by the existing team. Cash and Carry would be a separate business, which is 100 per cent owned by Walmart and it would continue to run by the existing team,” he said. He further said: “I don’t see changes in our strategy in terms of fulfilment centre or B2B e-commerce or the store strategy that we have.”