Amazon looks to spoil Walmart/Flipkart party

Amazon has made a formal offer to buy 60% of Indian e-commerce venture, Flipkart, putting it on a collision course with arch rival Walmart. 

Last month, we reported that Walmart was in advanced discussions to buy a 51% stake in the company. It has reportedly offered $12 billion to $18 billion, although to seal the deal it will likely have to thrash things out with Flipkart investor and partner, eBay, according to ReCode. The US retailer has held intermittent talks with Flipkart over the past two years, with the two inking a non-disclosure pact in 2016 that was renewed in 2017. 

Amazon has waded in with a slightly higher valuation, pegged at around $22-23 billion; in addition, its bid comes with a break-up fee of $1.5-2 billion, a source told The Economic Times. “The Flipkart board is considering the Amazon bid but it does not cover the operating risk involved in pursuing such a transaction,” said the source. 

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