Report: Walmart to acquire India’s Flipkart by end of June

According to reports, Walmart is very close to purchasing a majority stake in Indian e-commerce player Flipkart by the end of June. The company made an offer to purchase at least 51% of Flipkart shares for between $10 and $12 billion. If this deal goes through, Flipkart will be valued at $18 billion, though it’s being rumored that Amazon may come with a counter offer to Walmart’s.

This purchase would be the largest acquisition of an online business for the US retail giant, and would help it to compete against Amazon’s online dynasty, with an e-commerce market that Morgan Stanley estimates will be worth $200 billion in a decade. Amazon does have a presence in India, however it has been unable to make a huge dent in Flipkart’s marketshare. And any offer the online retailer makes will likely be met with regulatory opposition, as combining the two companies will result in an abnormally dominant market share in the e-commerce space by the two players.

An acquisition from Walmart would strengthen Flipkart’s financial muscle, while also gaining access to the company’s large supply chain, expertise, and logistics. Walmart has been trying for some time to break ground in India, and this deal with Flipkart could be exactly what the company needs to get its foot in the door while giving Flipkart what it needs to properly compete with Amazon.

You can read more about the acquisition here.