Wal­mart Cleared for $16 Bil­lion Flip­kart Ac­qui­si­tion

Asia Outlook - - News -

Amer­i­can gro­cery gi­ant Wal­mart has been given the green light to buy In­dian on­line mar­ket­place Flip­kart, a move which will see it ramp up its ri­valry with Ama­zon.

Wal­mart will pur­chase a 77 per­cent stake in the firm for around $16 bil­lion, the largest deal to date in In­dia's ecom­merce in­dus­try.

The Com­pe­ti­tion Com­mis­sion of In­dia (CCI) cleared the deal de­spite op­po­si­tion from the Con­fed­er­a­tion of In­dia Traders, which said the ac­qui­si­tion would lead to con­ve­nience stores be­ing put out of busi­ness.

Wal­mart com­mented on the CCI de­ci­sion in a state­ment: “We be­lieve that the com­bi­na­tion of Wal­mart's

global ex­per­tise and Flip­kart will po­si­tion us for long-term suc­cess and en­able us to con­trib­ute to the eco­nomic growth.”

In other Wal­mart de­vel­op­ments, an agree­ment has been made with JD.com to in­vest in $500 mil­lion in Chi­nese on­line food de­liv­ery com­pany Dada-JD Dao­jia.

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