Walmart’s proposed acquisition of e-shopping site Flipkart has been approved by the Competition Commission on Wednesday. Earlier in May this year, Walmart had announced about its plan to acquire 77% stake in e-shopping portal. Marketers said that the proposed buyout of Flipkart was Walmart’s till date biggest takeover. The Competition Commission of India (CCI) in a tweet on Wednesday said that the proposed acquisition of Flipkart Private Limited by Wal-Mart International Holding, Inc. The Competition Commission of India is also responsible for keeping a check on unfair business practice in the business industry.
Following the approval by Competition Commission of India (CCI), the move will now allow both the companies to close the deal. Walmart earlier on May 9 said that it will pay $16 billion to acquire 77% stake in Flipkart, therefore making one of the biggest acquisition. After announcing the deal, Walmart sought the permission from the CCI to approve the deal saying that its proposed acquisition was not creating any competition concerns.
While CCI has now approved the deal, the move is likely to trigger traders in the country who may not be comfortable with the deal. Industry experts say that traders may not be happy with the Walmart Flipkart deal, therefore, after CCI’s approval, traders may rake the issue with the government, which may create hurdles for the deal.
Walmart which is one of the biggest super-store chains, has been in competition with Amazon which over the years has created strong inroads in the country.