INSUBCONTINENT EXCLUSIVE:
Walmart is in talks to take a minority stake in Flipkart that could go up to 50 or 60%.
Amazon, because of the greater certainty in such a deal, according to people familiar with the matter
Both US companies are bidding for a controlling stake in Flipkart at a valuation of about $20 billion, said the people, asking not to be
deal more quickly and smoothly, the people said
Walmart faces fewer regulatory hurdles because it has no online retail presence in the country now, while Amazon is the second-largest
executives have emphasized their commitment to the market.A Walmart deal has been discussed since at least last year and could still change
open the e-commerce business, one of the people said
Amazon founder Jeff Bezos has committed $5.5 billion to India and his country chief, Amit Agarwal, has made progress by adapting the site to
local conditions.Walmart, Amazon and Flipkart declined to comment.Walmart is in talks to take a minority stake in Flipkart that could go up
to 50 or 60 per cent, said the people
Bloomberg News reported last month that Walmart would likely pay about $7 billion for one third of the company.If completed, the deal would
give Walmart a major stake in an emerging market of 1.3 billion people
India is the next big potential prize after the US and China, where foreign retailers have made little progress against Alibaba Group
competition even more fierce
By contrast, an Amazon deal for Flipkart would consolidate the market and allow Bezos to step up investments in a country still in need of
basic infrastructure for faster delivery and high quality goods.Still, an Amazon deal would be much more complicated than one with Walmart,
Because of regulatory concerns, Amazon would likely have to offer concessions to government authorities, such as continuing to operate the
two e-commerce sites as independent brands
Bezos would also have to persuade Flipkart and its board to take a chance on government approval -- perhaps by guaranteeing a large breakup
If the deal goes through, it would be the biggest in the nascent history of Indian e-commerce.(Except for the headline, this story has not
been edited by TheIndianSubcontinent staff and is published from a syndicated feed.)
