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Walmart beats Amazon in the battle for India to buy Flipkart



So billion dollar deals are usually not disclosed.

A few hours before Walmart (wmt) announces the largest acquisition in its history, Masayoshi Son, CEO of SoftBank Group Corp. (sftby), distributed the beans to a room full of investors and journalists in Tokyo. He confirmed that the US retailer has agreed to take control of Flipkart Online Services, the leading Indian ecommerce vendor supported by SoftBank.

"I think we announced it last night," he said during an investor call for his own profit. "If it does not, it means I just spit it out, but it's definitely decided."

Son made the comment when he pointed out that his investments are paying off. The Japanese company invested $ 2.5 billion in Flipkart through its Vision Fund, and the share will total around $ 4 billion, Son said Wednesday. He did not specify any other terms of the Walmart acquisition. The deal estimates Flipkart at about $ 20 billion, the persons familiar with the case have already said.

An announcement is expected later on Wednesday.

"Oops."

After his first comments, Son noticed a sheet of paper that had been left on the podium for his attention. He picked it up and smiled.

"Oh, I see the Flipkart Walmart business is not fully confirmed at this point," he told the laughing crowd. "Yabai desune," he added, meaning "oops" or "that's not good" in Japanese.

"What should I do?" He said. "Well, I said it, I can not take it back, so that's it."

Flipkart, India's largest online retailer, is an important part of Walmart's efforts to spread across the country and against Amazon in the second most populated nation to fight the world.

The deal ̵

1; which may be the biggest ever in e-commerce – gives Walmart better access to an Indian e-commerce market, which Morgan Stanley has estimated at $ 200 billion in about a decade. Flipkart, meanwhile, is gaining additional capital and expertise to fight amazon, which has spent billions of dollars winning customers in India. Online sales in the world's second-largest nation are growing at around 35% per year, driven by an emerging middle class and urbanization, providing an attractive e-commerce environment, according to data handler Euromonitor.

The Deal – Expected It is one of Walmart & # 39; s greatest past experience – giving it greater access to an Indian e-commerce marketplace that Morgan Stanley will increase to $ 200 billion in about a decade. Flipkart, meanwhile, is gaining additional capital and expertise to fight amazon, which has spent billions of dollars winning customers in India. According to the data tracker Euromonitor, online sales in the world's second-most populous nation are growing at 35% per year, driven by a rising middle class and urbanization that provide an attractive e-commerce environment.


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