
USA based world's largest retailer Walmart after a long round of speculation on Thursday officially announced that it would buy 77 per cent of stake in Flipkart for $16 billion.
Within hours of adding Flipkart to its shopping cart at a USA $16 billion price tag, Walmart CEO Doug McMillon told the e-retailer's employees that the deal was among the best decisions and emphasised that India was the best place was to be in, according to sources. While eCommerce is still a relatively small part of retail in India, we see great potential to grow. They (Walmart) are a brick-and-mortal company, by and large.
The Flipkart-Walmart deal is clearly a "big deal".
But is the Walmart-Flipkart deal good for India? "The fault is theirs for having stood on the sidelines", said an investor in a consumer internet startup, declining to be identified.
The transaction, apart from tax authorities, would be subject to clearance from Competition Commission of India and other regulators and will make India the biggest emerging market with US-based Amazon, China's Alibaba and Walmart pitted against each other.
The online retail giant's most consistent (and strongest) presence within Google's Shopping campaigns was in the home goods product category, although they also ran PLAs in other categories like furniture, office supplies, and novelty gifts. It also announced that it will closely study the metrics of the deal and move to the Government or appropriate Authority to seek a ban on the deal till the time all related issues are resolved satisfactorily.
"eBay has notified Flipkart and Walmart that it intends to sell its holdings in Flipkart, which will represent gross proceeds of approximately $1.1 billion".
More news: Basketball: Warriors eliminate Pelicans in Game 5India is not an easy turf Back in United States, the deal has not gone down well with Walmart shareholders.
The report further said, "SoftBank believes in the upside potential of Flipkart under Walmart leadership, which could eventually offer an exit to the remaining shareholders by taking the company public in the USA".
"India is a key market for Walmart, where the company is battling to hold off advances from Amazon, which has made significant progress growing market share from about 10% in 2014 to 27% in 2017, compared to 38% to 34% for Flipkart during that same time", the analysts wrote.
On Wednesday at the employee town hall, employees of Flipkart were in cheer when the co-founder Binny Bansal announced a 100 per cent buyback of vested ESOPs (employee stock options).
In Brazil, a nation just coming back after a two-year recession and political unrest, Walmart has already closed stores, overhauled management and wound down its e-commerce platform.
"This investment is of huge importance for India and will help fuel our ambition to deepen our connection with buyers and sellers and to create the next wave of retail in India".
With more start-ups entering the scene, Shah expects a steady increase in cross-border deal activity.
Related News:
-
SpaceX's Block 5 lands safely, delivers Bangabandhu 1 into orbit
The Falcon 9 rocket used in Friday's launch was the first flight of an upgraded version of the rocket dubbed Block 5. The new Block 5 booster is seen as critical to SpaceX's plans to undertake crewed missions for NASA.Pyongyang sets nuclear test site demolition date
Most analysts have concluded that North Korea has about a dozen weapons and has ballistic missiles capable of reaching USA cities. It is not certain how many nuclear engineers there are in the North.'Fortnite' Players Are Editing Dancing Thanos Into Marvel Movie Scenes
Dread it, run from it, destiny still arrived for Fortnite gamers because the Mad Titan is here. PUBG had over 1.3 million of their most concurrent players on Steam. -
Perth scientist David Goodall to end his life in Switzerland on Thursday
Exit International , which represented the scientist, said Goodall passed away while listening to Beethoven's " Ode to Joy ". The lethal cocktail is normally ingested, but since Goodall couldn't swallow, the substance was injected intravenously.Nadal breaks McEnroe's 34-year-old set record
In the quarter-finals, Lajovic will meet South Africa's Kevin Anderson who overcame German Philipp Kohlschreiber 6-3, 7-6 (9-7). Thiem fought back from a set-and-a-break down against Borna Coric to book his spot against Nadal with a 2-6 7-6 6-4 win.Pompeo Criticized Over Incorrect Use of NKorean Leader's Surname
Kim, a naturalized US citizen, was born in Jilin, China, one of the provinces that borders North Korea and is ethnically Korean. He said, however, that the US troop presence in South Korea would not be part of initial negotiations with North Korea. -
Abe offended by Israeli chef's serving of dessert in shoe
Benjamin Netanyahu put his foot in his mouth by serving visiting Japanese Prime Minister Shinzo Abe dessert in a shoe. Never, ever, serve anything to the Japanese in a shoe! If this is meant to be humor, we do not find it amusing .Nicki Minaj & Cardi B Pictured Together At Met Gala Following Feud
But I really felt a certain type of way, my feelings were really hurt , and I was on some, 'This is why I keep to myself. Fortuitously, Nicki is a close friend of Jeremy's , and those two attended the Met Gala together back in 2016.Early voting for primary election begins
Early voting continues today, May 3, and Friday, May 4, from 8 a.m. -5 p.m. and Saturday, May 5, from 8 a.m. -1 p.m. WRAL.com has an interactive map to see how your district - and the incumbents on your ballot - have been affected. -
United States fighters escort Russian bombers during training flight: Russian military
It is the first incident of the kind since USA jets intercepted Russian aircraft over a year ago on May 3, 2017. At no time did the bombers enter North American sovereign airspace, said the NORAD spokesman, Canadian Army Maj.Qualcomm Snapdragon 710 and Snapdragon 730 specs leak in full
Both the chipsets seem quite capable of offering two Kyro 3xx cores clocked at 2.2Ghz and six others clocked at 1.7GHz on the 710. The chipset features a combination of eight Kryo3xx cores out of which two are performance cores and six are efficiency cores.United Kingdom agronomists visit to help with The Players Championship
Woods has won 14 major tournaments as well as lifting 79 trophies on the PGA Tour and 40 event victories on the European Tour. We could easily point to those eight shots as the best we've ever seen on the 17th hole at TPC Sawgrass.