Walmart is far along in discussions with Flipkart for a controlling stake in the Indian eCommerce marketplace, but Flipkart’s board hasn’t yet firmed up the deal. However, a source close to the matter said a resolution could happen in a matter of days, Reuters reported.
Flipkart’s board agrees with engaging with Walmart “in principle,” but a few other issues, such as taxation, need to be ironed out before a deal can be made. Two sources told Reuters Alphabet Inc. might invest in the company. Another source said SoftBank Group may sell its stake if it’s offered the right price. Neither Flipkart nor Alphabet replied to Reuters’ request for comment. SoftBank and Walmart also remained mum.
The news comes days after it was reported that Walmart was getting extremely close to securing a deal that would give it a majority stake in Indian eCommerce powerhouse Flipkart. The deal would reportedly be for $12 billion at the low end, and experts predicted that the two sides could come to a final agreement within the next two weeks, according to news from Bloomberg.
Reports had indicated that all major investors in the firm were on board with the big Walmart buy. Tiger Global Management planned to sell nearly all of its 20 percent stake, while SoftBank Group planned to sell off the bulk of its 20 percent-plus holding. At the end of the potential deal, Walmart could end up with 60 percent to 80 percent of Flipkart. However, what that will mean remains unclear. Still up in the air is whether or not Flipkart’s founders will continue to lead the business after the purchase.
And, of course — as with any negotiation — it’s very possible the deal will all come to nothing if talks between the two companies fall apart. Amazon has reportedly made an offer to acquire a majority stake as well.