Walmart has a taken yet another step in its intended takeover of Indian ecommerce giant Flipkart with the global retailer approaching the fair trade regulator Competition Commission of India (CCI) for approval of its proposed acquisition.
Walmart has said in its proposal that its proposed acquisition of a majority stake in e-commerce major Flipkart doesn’t raise any competition concerns. In its submission Walmart said that Flipkart’s acquisition will happen through its subsidiary Wal-Mart International Holdings.
In its documents Walmart has said Flipkart is a Singapore-based investment holding firm, which along with its direct and indirect subsidiaries, both in India and elsewhere, is primarily engaged in the business of wholesale cash and carry of goods and providing marketplace based e-commerce platforms to facilitate trade between customers and sellers in India. Mergers and acquisitions beyond a certain threshold require the approval of the Competition Commission of India.
According to the notice submitted to the CCI by Wal-Mart International Holdings, the proposed transaction will be effected pursuant to the share purchase agreement and the share issuance and acquisition agreement entered into on May 9 by and among Walmart’s subsidiary and Flipkart.