Amazon joins the race to acquire Flipkart; offers to buy 60 pc stake

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As the world’s largest retailer, Walmart, is inching closer to buying out India’s Flipkart in a US $12 billion deal, rival Amazon has jumped into the fray, making a formal offer to pick up a 60 percent stake in Flipkart, as per a CNBC TV18 report.

Apart from a 60 percent stake, Amazon also offered Flipkart a breakup fee of US $2 billion, the channel further said in its report. Amazon’s bid is likely to be at par with Walmart Inc’s bid for the Indian e-commerce company.

ALSO READ: How Walmart-Flipkart deal will be a game-changer in the Indian e-commerce industry

As per the report, Jeff Bezos-run Amazon is also seeking a non-compete agreement with Flipkart’s founders. However, the CNBC TV18 report was quick to point out that Flipkart founders Sachin Bansal and Binny Bansal are in favour of a Walmart acquisition.

In Walmart’s proposed deal, Tiger Global Management will sell nearly all its 20 percent stake in Flipkart, while SoftBank Group will reportedly offload a substantial part of its 20 percent-plus holding, said the Bloomberg report quoting sources. Further, Walmart was looking to pick up 60-80 percent of valuing Flipkart at US $20 billion.

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