Indian e-commerce giant Flipkart is said to be close to a deal that will see it acquired by US retail major Walmart. According to Bloomberg, the deal has almost been finalized, and is worth $12 billion. The deal will see Walmart acquire a majority and controlling stake in Flipkart, which will value the company at significantly higher than it’s been thus far. While the deal has been widely reported in the past few weeks, it seems that it is much closer to completion than earlier anticipated.
As per the report, all major investors in Flipkart are now on-board with the deal, and are willing to sell their stakes to Walmart. Initially, some investors were considering the offer from Amazon, which also showed interest in the purchase. However, it now appears that the deal to sell Flipkart to Walmart is practically done.
Tiger Global Management, which has a 20 percent stake in Flipkart, is expected to sell the entirety of its stake. Additionally, SoftBank Group Corp will also sell a large portion of its over 20 percent stake in the company. Other investors will also be selling their stakes in order to offer Walmart anywhere between 60 to 80 percent of the company.
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There are still some issues that require negotiation, including who will manage and control the company after the acquisition. It is believed that Flipkart’s founders may continue to lead in executive roles. Walmart’s acquisition will help it gain a significant foothold in the rapidly-growing Indian e-commerce and retail market, with an established brand that is already in a leadership position in the country. Amazon was also in the running to complete the acquisition, but the sale to Walmart is looked at as being easier to complete since it will not create any hurdles regarding potential anti-competitive concerns.