Who is Taking Flipkart?
Amazon has emerged as new contender for Indian e-commerce giant Flipkart. The global e-tailer has made a formal offer to buy a 60% stake in Flipkart on Monday, sources said.
Amazon's offer is likely to be on par with Walmart's bid for the Indian company. The giant is also seeking a non-compete agreement with Flipkart's founders, according to the sources.
The Amazon bid offers a breakup fee of $2 billion, while the Walmart offer includes the buyout of over 80% stake.
The company, helmed by billionaire Jeff Bezos, said it does not offer comments on rumours and speculations.
Walmart proposed to retain Flipkart's current structure, while Amazon has made not such details known.
Walmart is expected to gain three to four seats on Flipkart's ten-member board.
Walmart has said it will retain the management team of Flipkart including CEO Kalyan Krishnamurthy
The buzz of the $12 billion deal between Walmart and Flipkart recently got louder with Softbank approaching Walmart's global CEO.
The e-commerce major's investors and founders are in favour of the deal with Walmart, according to the sources.
The sources added that Sachin Bansal, founder of Flipkart, was in the US last week to oversee final lap negotiations with Walmart.
The Walmart global team may come to India soon to close the deal.
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