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Flipkart-Walmart Deal In It’s Final Stage, Walmart Will Occupy 40% Of Flipkart

The world’s largest retailer and American retail chain Walmart has almost in final negotiations to buy a majority stake in Flipkart Ltd. in India. From this deal, Amazon has challenged its rival Flipkart in the Indian market in the e-retail world.

This deal is very important for Walmart, who is facing a challenge in markets across the world. Walmart is preparing to become the largest player in the world of e-retail by this deal. Due to this, Walmart has taken the initiative to strengthen its business in Europe.

Walmart will buy at least 55% of Flipkart in a deal that will value the company at $20-21 billion, the people said. Walmart will get a majority of its stake by purchasing shares from existing Flipkart investors at a discount to the $20-21 billion tag, they said.

Walmart also wants Flipkart co-founders Binny Bansal (group chief executive officer) and Sachin Bansal (executive chairman) and CEO Kalyan Krishnamurthy to continue in their roles after the acquisition, the people said.

Walmart and some Flipkart investors, including Japan’s SoftBank Group Corp., are yet to agree on the final details and a deal could take at least a month to be signed, the people cited above said on condition of anonymity.

While the financial contours of this new deal on the table are broadly expected to match the Walmart proposal, Amazon is reportedly also offering a breakup fee of $2 billion to underscore its interest.

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