US e-commerce giant Amazon is moving against world’s biggest retailer Walmart to try to scuttle the latter’s move to take control of India’s largest e-commerce firm Flipkart.
With Flipkart in advanced talks with Walmart Inc. on selling a majority stake, Amazon may submit a rival offer to buy the Indian company, Mint newspaper has reported. Previously, the US giant had exploratory talks about buying Flipkart.
Walmart is in talks to buy 55% of Flipkart via the purchase of a mix of primary and secondary shares in a deal that could value Flipkart at US$21 billion, the daily said.
Flipkart investors Tiger Global Management, Naspers, Accel Partners, IDG Ventures and others are expected to sell much or all of their shares in the Flipkart-Walmart deal, they said. But secondary share purchases would allegedly happen at a lower valuation.
Launched in 2007, Flipkart has raised more than $6 billion so far. It also owns fashion businesses Myntra and Jabong, eBay India and mobile payments firm PhonePe.
Flipkart is seen as an attractive asset globally, given the long-term potential of India’s enormous market.
A sale to Walmart for more than $20 billion would be a stunning rebound for a company that struggled against Amazon’s India arm in its initial years.