The deal with Walmart, involving primary and secondary shares, is expected to value Flipkart at about United States dollars 20 billion, they added. Bloomberg reports that the board decided that a Walmart deal is more likely to receive regulatory approval. Flipkart, Walmart and Google didn't immediately respond to requests for comment. It is quite a smart strategy by Walmart to take on Amazon. It is expected that the primary valuation will be closer to $20 billion.
Alphabet Inc. may be contributing $3 billion to the investment.
Apart from a 60 percent stake, Amazon also offered Flipkart a breakup fee of USA $2 billion, the channel further said in its report. Flipkart and Amazon dominate the online shopping space in Asia's third-largest economy.
These sellers are demanding clarity on the way forward on the grounds that they too need to prepare their business plans accordingly, in light of the deal that is likely to value Flipkart at about $20 billion. Sources said Sachin's continuation would become untenable if the proposed deal with Walmart goes ahead. "To the best of my knowledge no decision has been made yet". According to a recent Economic Times report, Flipkart's Executive Chairman Sachin Bansal may exit Flipkart, once Walmart enters. The interest of Amazon and Walmart in India could also be because the retailers have struggled to find footing in China, largely because of the presence of local e-commerce players like Alibaba.
Earlier this year it was reported that Amazon may submit a rival offer to buy the company, which now seems dead.
Oil Prices Fall on Higher US Crude
Futures for September delivery were 0.3 percent lower at 441.2 yuan per barrel on the Shanghai International Energy Exchange. If the API's stockpiles data is reflected in the government announcement, it would be the biggest build since early March.
Walmart is now seeking a bigger stake than previously expected. "It will be very hard for them to win India back if they miss this opportunity".
The objective of the move is to regain its status of a private limited company in Singapore ahead of investment by Walmart.
Sales from Walmart International, which runs about 6,300 stores globally, stood at $118 billion in the fiscal year ended 2018, down almost 14 percent from 2014.
Its urgency to stem market share losses has seen it launch talks to merge its British arm Asda with Sainsbury's.
Walmart's shares ended 1.22 percent lower at $86.34 on Wednesday.