The battle for Flipkart intensifies as now Amazon has initiated a formal bid to acquire a 60% stake in the Indian e-commerce platform according to a report by CNBC TV18 which cited sources.
The news comes after Google's parent company Alphabet was reported to be set to join forces with Walmart in India to aid Walmart's efforts to buy a majority stake in Flipkart for around $12bn.
According to CNBC TV18, Amazon’s offer was on par with Walmart's bid, while it had additionally offered to pay a $2bn breakup fee if the deal for some reason does not go through. It added that Walmart still remained the front-runner in the deal as Flipkart investors Tiger Global, Naspers as well as founders Sachin Bansal and Binny Bansal prefer Walmart over Amazon.
Tiger Global, which controls around 20% of Flipkart, Naspers, which controls around 14%, and other smaller investors are all expected to gain full exits from the company post the deal.
Japan’s SoftBank, the largest investor in Flipkart with around a 25% stake, might sell a big part of its holding in the deal.