Amazon Offers To Buy 60% Stake In Flipkart: Report
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Amazon.com INC has created a proper offer to buy a sixty percent stake in Indian online merchant Flipkart, CNBC-TV18 reported on Wednesday, citing sources. Amazon additionally offered Flipkart a breakup fee of USD two billion and is probably going to get on par with Walmart Inc’s bid for the e-commerce company, CNBC TV-18 reported.
Amazon is additionally seeking a non-compete agreement with Flipkart’s founders, the report additional.Reuters in Apr reported that Walmart was probably to succeed in a deal to buy a majority stake in Flipkart by the end of June. A deal with Flipkart would boost up the Walmart-Amazon battle for an even bigger share of India’s fledgling e-commerce market, that Morgan Stanley estimates are going to be value $200 billion in a very decade.
The deal would be the U.S.A. retail giant’s biggest acquisition of a web business and would pop out a battle with Amazon within the native e-commerce market that analysts forecast are going to be price $200 billion a year inside a decade. Flipkart last raised around USD two.5 billion in August. The spherical saw the entry of Japan’s Softbank as a capitalist within the company. Flipkart had then declared that it had profit far more than USD four billion on its record.
While it’s being speculated that Walmart could retain the highest management of the corporate once the acquisition goes through, it’s conjointly being aforesaid that the 2 founders Sachin Bansal and Binny Bansal area unit trying to sell their entire stake within the company. An interpreter for Walmart declined to comment, whereas Amazon aforesaid it doesn’t supply comments on rumors and speculation.
Flipkart didn’t instantly reply to an email seeking comment. Interestingly, content and therefore the co-founders of Flipkart – Sachin Bansal and Binny Bansal – have all worked for Amazon within the past. A manage Flipkart would improve the Walmart-Amazon battle for an even bigger share of India’s fledgling e-commerce market, that Morgan Stanley estimates are going to be value $200 billion in an exceedingly decade.