Flipkart may need to tweak $16b deal

New Delhi, June 10: Fair trade regulator CCI might recommend structural changes to the proposed $16-billion Walmart-Flipkart deal to address possible competition concerns, according to officials.

CCI might also take cues from a ruling in South Africa with respect to Walmart-Massmart deal, which was announced in 2010.

Last month, Walmart announced acquisition of 77 per cent stake in Flipkart for about $16 billion (`1.05 lakh crore) in the largest e-commerce deal.

The retail giant has approached the CCI for approval, saying deal does not raise any competition concerns. However, various trade organisations have opposed the deal.

While the CCI is yet to take a call on the deal, officials said the regulator might order certain structural changes in the proposed transaction to address possible competition concerns.

In response to a query that the CCI may order some structural changes in the deal and whether Walmart would be ready for making such changes for getting approval, Walmart said, “we have no comments”.

Officials said CCI might take a cue from the South African example and might even recommend setting up of a long term fund to modernise kiranas going forward besides supporting local manufacturing by SMEs. — PTI

RETAIL TRADER body Confederation of All India Traders has threatened nationwide agitation if the government clears $16 billion Walmart-Flipkart deal.