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Amazon seeks to acquire 60% stake in Flipkart to tackle Walmart's bid

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By Taruka Srivastav, Reporter

May 3, 2018 | 2 min read

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.

Amazon bids to acquire 60% stake in Flipkart to tackle Walmart's bid

Amazon bids to acquire 60% stake in Flipkart to tackle Walmart's bid / Flipkart

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.

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