American retail chain Walmart has completed a due diligence process on Indian e-commerce firm Flipkart, as it seeks to buy a 51% stake in the company.

Walmart has already prepared an offer proposal and plans to spend between $10bn and $12bn on Flipkart shares.

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Both the companies are in talks for the deal, which if finalised, would reportedly value the Indian e-commerce firm at around $20bn.

“The deal with Walmart will offer the Indian e-commerce firm access to Walmart’s expertise in retail industry and will assist the company to grow its private label business.”

Last week, global online retailer Amazon revealed plans to make an offer to buy Flipkart.

Amazon made a move on the e-commerce firm after Walmart revived talks to buy a majority stake in Flipkart, as both retailers are seeking dominance in the Indian online industry.

Reportedly, the probability of a deal with Amazon is low, and if the deal was concluded, it could spark monopoly concerns as Flipkart and Amazon dominate India’s e-commerce market.

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The deal with Walmart will offer the Indian e-commerce firm access to Walmart’s expertise in the retail industry and will assist the company to grow its private label business.

After the conclusion of the deal, Walmart may retain the top-level management of the Indian e-commerce firm initially.

Walmart is also likely to introduce its employees on Flipkart’s legal and finance teams, and appoint a new chief financial officer at Flipkart.

Japanese SoftBank is considering selling its 20% in Flipkart if it gets a good offer from the global retail chain.

If the deal is concluded, Accel Partners, Tiger Global Management and Naspers, which currently hold a minority stake in Flipkart, would also sell their stakes to Walmart.