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Amazon wants to buy 60 percent of Flipkart; US e-commerce giant's bid likely to be on par with Walmart's offer

Amazon.com Inc has made a formal offer to buy a 60 percent stake in Indian online retailer Flipkart, CNBC-TV18 reported on Wednesday, citing sources.

Amazon also offered Flipkart a breakup fee of $2 billion, the TV channel reported. Amazon’s bid is likely to be on par with Walmart Inc’s bid for the Indian e-commerce company, CNBC-TV18 reported.

 Amazon wants to buy 60 percent of Flipkart; US e-commerce giants bid likely to be on par with Walmarts offer

Representational image. Reuters

Flipkart’s investors and founders are in favor of the deal with Walmart, with founder Sachin Bansal overseeing final negotiations with Walmart, CNBC-TV18 said.

Amazon is also seeking a non-compete agreement with Flipkart’s founders, the report added.

Reuters in April reported that Walmart was likely to reach a deal to buy a majority stake in Flipkart by the end of June.

A deal with Flipkart would step up the Walmart-Amazon battle for a bigger share of India’s fledgling e-commerce market, which Morgan Stanley estimates will be worth $200 billion in a decade.

The Walmart global team may come to India soon to close the deal, the report added.

A spokesman for Walmart declined to comment, while Amazon said it does not offer comments on rumours and speculation.

Flipkart did not immediately respond to an email seeking comment.

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Updated Date: May 02, 2018 18:23:16 IST