Walmart reported to be in talks to buy major stake in Flipkart
According to an article on Reuters.com, Bentonville, Ark.-based Walmart Inc. is in talks with Flipkart regarding purchasing a 40 percent stake in the Indian e-commerce firm.
“In what would be one of its biggest overseas deals, the U.S. retailer is looking at buying new and existing shares in Flipkart and due diligence is likely to begin as early as next week,” the article stated, noting that Flipkart would be valued at more than $12 billion, the figure cited when approximately one-fifth of the company was acquired last year by Japan’s SoftBank Group’s Vision Fund.
A partnership with Walmart would help Flipkart in its fight against Amazon, which has committed to investing $5 billion to expand its presence in India.
Flipkart is currently expanding its private label business, which is strong in appliances and home goods.