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WalMart-Flipkart announces deal of $ 161 trillion deal on May 9.

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Walmart, the US retail company, is going to spend more than $ 16 billion (about 11 trillion rupees) to buy a 70% stake in Flipkart, India’s largest e-commerce company. Deals can be announced on Wednesday. In the deal Walmart will make a $ 2-2.5 billion primary investment, which Flipkart will use to increase its business. According to sources, Google’s parent company, Alphabet, will also participate in primary investment. They say they can invest $ 1 billion ($ 67 billion) in Flipkart.

One source said that Minority Investors will have the option of listing it in India or the US for the next three-four years to maintain Flipkart’s Indian character. Minority shareholders will have 30% share in the company. The source said, “Minority Investors will have the option to unlock the value by listing the company in a set time. Although it is too early to say anything, Flipkart can be listed on the New York Stock Exchange. For this news, both Walmart and Flipkart refused to comment. Walmart will buy Flipkart in two phases. Before Walmart’s primary investment, the deal will be $ 20-22 billion and then 22-24 billion dollars. After buying Flipkart, it could put 3-3.5 billion dollars.

Walmart wants to take advantage of its grocery stores network to increase retail business in the country. The company will modernize them for this and connect these stores with Flipkart’s marketplace model. This information was given by the informed sources from this deal. He said, “WalMart and PhonePay will help 50-60 million grocery stores to adopt modern business practices. They can help in the development of digital and cashless transaction systems for growth. Offers Flipkart’s electronic phone transfer system on the phone.

According to the proposed deal, Flipkart co-founder Binni Bansal may be the new chairman and the group CEO. This information is given by another source. At present, Flipkart CEO Kalyan Krishnamurthy is and he will remain in this role. Sachin Bansal, who owns 5.5 percent stake in Flipkart, will be out of the company after selling all his shares. Sachin and Binny Bansal are not relatives One of the sources mentioned above said, “Walmart can appoint three directors and chief financial officers in the 10-member board of the Indian company.”

With the $ 2-2.5 billion investment WalMart is buying 60% of the Indian company’s current investors for about $ 14 billion. Flipkart has 20.8% of SoftBank, eBay has 6.1% and Sachin Bansal has 5.55% stake.