Mumbai/Bengaluru:Walmart is likely to announce its much-anticipated deal to buy a controlling stake in Indian e-commerce player Flipkart before the end of this week, people aware of the development said, in what is likely to be the US retail giant’s biggest acquisition of a business.
Walmart and Google parent Alphabet Inc will buy up to 75% of Flipkart, 2 people familiar with the matter said, declining to be named as the talks are private.
Bentonville, Arkansas-based Walmart will acquire about a 60% stake in Flipkart, while Alphabet will get a roughly 15% stake in the online marketplace for about $3 billion, one of the persons aware of the matter said.
Reuters previously reported that Walmart was in advanced talks to acquire 51% or more of the e-commerce player for $10 billion to $12 billion, valuing Flipkart at some $18 billion to $20 billion.
Both the persons aware of the deal said that Flipkart Group chief executive Binny Bansal held a closed-door meeting with the firm’s top leadership at its Bengaluru headquarters on Monday, and one added that Bansal said that Flipkart co-founder Sachin Bansal would exit after the Walmart deal is sealed.