Informed sources said that Wal-Mart plans to purchase a partial stake in Flipkart from Tiger Global Fund and Softbank. The deal is expected to value Flipkart at approximately US$20 billion. The current negotiations are at a critical stage and are expected to be signed this month. Of course there may be variables as well. , Including valuation and equity weight, In addition, negotiations may also break down.
Industry sources said that Wal-Mart’s acquisition of Flipkart’s 1/3 stake will make Wal-Mart a place in the Indian market. Although it is the world’s largest retailer, Wal-Mart is facing strong challenges from Amazon as more and more consumers shop online.
In February of this year, there were reports that Wal-Mart plans to control Flipkart. On Wednesday, sources said that Wal-Mart is planning to invest 8 billion U.S. dollars to 10 billion U.S. dollars to acquire up to 51% of Flipkart shares.