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Walmart Inc buys Flipkart for $16 Billion, becomes biggest E-Commerce deal

The American retail giant bought a major stake in the domestic online retailer making it the largest e-commerce deal ever struck anywhere in the world.

Walmart Inc,Flipkart Walmart Inc buys Flipkart for $16 Billion, becomes biggest E-Commerce deal Source : Press

American retail giant Walmart Inc bought a 77% stake in domestic online retailer Flipkart for $16 billion (Rs 1.12 lakh crore) in the largest e-commerce deal ever struck anywhere in the world. The deal values the 11-year-old Flipkart at approximately $21 billion (Rs 1.47 lakh crore).

This deal pushes the poster boy of Indian e-tail to among the most valued internet startups in the world. The deal also made a fortune for the co-founders Binny and Sachin Bansal with each getting $ 1 billion, although that status may be short-lived as the pair may have to pay 20 percent capital gains tax on any shares they sell in the company, tax experts say.

The transaction, which was officially announced on Wednesday after months of extensive media coverage, has been in the works since 2016. According to Doug McMillion, CEO of Walmart, "India is one of the most attractive retail markets in the world, given its size and growth rate, and our investment is an opportunity to partner with the company that is leading a transformation of e-commerce in the market."

Despite its massive shareholding, Walmart plans to keep Flipkart as a separate brand and have an independent operating structure.


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