Walmart appears to be close to acquiring Indian e-commerce giant Flipkart, and is reportedly trying to get Google to be part of the deal to help challenge rival Amazon.
Google’s parent company Alphabet is likely to take a minority stake in Flipkart and will probably invest US$1-2 billion after the Walmart acquisition, according to a report in the Economic Times.
The American conglomerates forged a partnership in the US last year which sees Walmart products sold on Google Express, the tech giant’s online mall. Google also offers personalized voice shopping for Walmart products online, the daily noted.
Walmart has reportedly offered to buy up to 85-86% of Flipkart through a mix of primary and secondary investment. Apart from possibly investing $2-2.5 billion directly in Flipkart, Walmart is looking to buy the shareholdings of individual investors.
China’s Tencent and US-based Tiger Global Management, which together own a 26.5% stake, will exit partly in the initial round, while SoftBank, which owns a 20.8% stake, could exit in the first phase of the takeover, the report said.