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Walmart Completes Due Diligence For Stake In Flipkart After Rival Offer From Amazon

Walmart Might Invest $7 Bn In Flipkart, Taking Its Valuation To $20 Bn

Walmart completed a thorough due diligence process on e-commerce firm Flipkart this week, two sources said, as the US retail giant looks to take a controlling stake of 51 percent or more in the Indian company.

Walmart has already floated a shareholder agreement, or offer proposal, and is looking to shell out about $10 billion to $12 billion for the stake that would value Flipkart at roughly $20 billion, one of the sources familiar with the matter said.

A stake in Flipkart would pit Walmart against Amazon.com in India and local media have reported that Amazon is exploring a rival offer for India’s largest home-grown e-commerce player.

Walmart is now seeking a bigger stake than previously expected. Reuters reported in February that it was in talks to purchase a stake of over 40 percent in Flipkart, which is backed by the likes of SoftBank Group , Tiger Global, eBay, Accel Partners, Naspers, Tencent Holdings and Microsoft Corp.

Source
Economic Times
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