Putting an end to months of negotiations, retail giant Walmart is all set to announce its deal with Flipkart today, where it buys over 70% stake in the homegrown e-tailer. Walmart CEO Dough McMillon has landed in Bangalore to announce the deal officially.
One of the largest M&A deals in India, which values Flipkart at $20 billion, will be made official in a town hall meeting at Flipkart’s headquarters in Bengaluru. McMillon is expected to outline its India strategy to Flipkart’s employees.
Walmart will retain Flipkart’s management led by co-founder Binny Bansal and CEO Kalyan Krishnamurthy. On the other hand, co-founder Sachin Bansal sold all his stake to Walmart for $1 billion as he left the company.
Walmart plans to link consumers through its partnership with kirana stores. This is seen as an attempt to smother any criticism of its entry to one of the most profitable markets in the world.