Indian regulator clears Walmart’s $16bn acquisition of Flipkart
New Delhi — On Wednesday, India’s anti-trust regulator approved US retail giant Walmart’s $16bn acquisition of Indian e-commerce firm Flipkart, beefing up the competition for rival Amazon in the fast growing market.
Arkansas-based Walmart announced in May it was acquiring about 77% of Flipkart for roughly $16bn, the biggest deal in India’s e-commerce sector, which Morgan Stanley has estimated will grow close to an annual $200bn in a decade.
The Confederation of All India Traders had opposed the Walmart-Flipkart combination saying it would create unfair competition and drive local convenience stores out of business. The competition commission of India has approved the proposed acquisition of Flipkart Private Ltd by Wal-Mart, the anti-trust body said in a message on twitter.
Walmart had previously said it may take Flipkart public in as soon as four years’ time. The acquisition of Flipkart will give Walmart a stronger foothold in a market in which it has struggled to expand in the last decade, partly due to restrictions around foreign investment in physical retail.