US retail giant Walmart has completed the acquisition of a 77% stake in Indian e-commerce firm Flipkart for almost $16bn.
The deal, which makes Walmart the largest shareholder in the Flipkart Group, follows approval from India’s antitrust regulator, the Competition Commission of India (CCI).
The remaining stake is currently held by other shareholders, including Flipkart co-founder Binny Bansal, Tencent Holdings, Tiger Global Management, and Microsoft.
According to Walmart , the deal will transform its position in the Indian market. The company plans to create sustained economic growth across agriculture, food and retail through partnerships.
Walmart International president and CEO Judith McKenna said: “Walmart and Flipkart will achieve more together than each of us could accomplish separately to contribute to the economic growth of India, creating a strong local business powered by Walmart .
“Our investment will benefit India by providing quality, affordable goods for customers, while creating new skilled jobs and opportunities for suppliers.
“As a company, we are transforming globally to make life even easier for customers, and we are delighted to learn from, contribute to and work with Flipkart to grow in India, one of the fastest-growing and most attractive retail markets in the world.”
Walmart will also make investments to further support national initiatives and will bring sustainable benefits in jobs creation, offer support to small businesses, farmers and supply chain development, as well as reduce food waste.
The retail major will continue Flipkart’s existing management to oversee the business, while Tencent and Tiger Global will remain represented on the Flipkart board and will be joined by new members from Walmart .