Walmart is likely to announce its much-anticipated deal to buy a controlling stake in Indian e-commerce player Flipkart before the end of this week, two sources said, in what is likely to be the US retail giant's biggest acquisition of a business.
Walmart and Google parent Alphabet will buy up to 75 percent of Flipkart, the two sources familiar with the matter said, declining to be named as the talks are private.
Bentonville, Arkansas-based Walmart will acquire about a 60 percent stake in Flipkart, while Alphabet will get a roughly 15 percent stake in the online marketplace for about $3 billion (roughly Rs. 20,200 crores), one of the sources said.
Reuters previously reported that Walmart was in advanced talks to acquire 51 percent or more of the e-commerce player for $10 billion to $12 billion (roughly Rs. 67,200 crores to Rs. 80,700 crores), valuing Flipkart at some $18 billion to $20 billion (roughly Rs. 1.21 lakh crores to Rs. 1.34 lakh crores).
Both sources said that Flipkart Group Chief Executive Binny Bansal held a closed-door meeting with the firm's top leadership at its Bengaluru headquarters on Monday, and one added that Bansal said that Flipkart co-founder Sachin Bansal would exit after the Walmart deal is sealed.
Flipkart last year named Kalyan Krishnamurthy, a former executive of investor US hedge fund Tiger Global Management, as the head of its core business, wh...