CCI approves 16$ bn acquisition of Flipkart by Walmart

MUMBAI: The Competition Commission of India (CCI) has approved American retail giant Walmart’s $16 billion acquisition of online marketplace Flipkart. In May, Walmart acquired a 77 per cent stake in Indian e-commerce company.

With this, Walmart will compete directly with Amazon India in the fast growing e-commerce market. 

This is the biggest deal for India’s e-commerce sector, which is estimated to grow close to an annual $200 billion in 10 years. The acquisition will give Walmart a strong foothold in Asia’s third largest economy where the company has struggled to expand due to restrictions on foreign investment in retail stores

In a Twitter post, the CCI has given a heads up to the proposed acquisition of Flipkart by Walmart. The board, in its order, also added that the issue of Flipkart’s discounting practices would be dealt with separately in the upcoming e-commerce policy. 

The regulatory board also mentioned that the discounting practices by Flipkart may have to be reviewed by the relevant authorities, which will put pressure on regulators to clamp down on discounts on online platforms. 

Responding to CCI’s approval, Walmart said that the company is committed to contributing to the Indian economy by supporting farmers, businesses run by women in India and small and medium suppliers. 

The statement read: Flipkart is a prominent player in India with a strong, entrepreneurial leadership team that is a good cultural fit with Walmart.

Soon after the CCI’s approval on the deal, local trader body, Confederation of All India Traders (CAIT) opposed the Flipkart-Walmart deal on the ground that the acquisition will create unfair competition and drive local convenience stores out of business. 

CAIT’s secretary general Praveen Khandelwal said to Reuters, “We will certainly move the court against the CCI’s decision. CAIT has called an emergency meeting of its governing council on August 19 at Nagpur, where we will finalise our strategy for a nationwide movement.”

Latest Reads
World’s largest human gathering becomes platform for innovative healthcare campaigns

India is playing host to people from over 100 countries at Divya Kumbh 2019 at Prayagraj where over 15 crore people are visiting to take a dip in the holy waters of sangam.

MAM Marketing MAM
Joseph Radhik, Joshua Karthik launch 4th edition of PEP Asia Summit

Joesph Radhik and Joshua Karthik are launching the fourth edition of PEP Asia on 20 February to bring together the community of portrait, photojournalism, wedding, wildlife, architectural, landscape photographers among others in India and neighbouring countries.

MAM Marketing Brands
Sirona’s new campaign encourages women to ‘rise up with menstrual cups’

In a bid to encourage women to move past pads and switch to comfortable, convenient, and environment-friendly menstrual cups, menstrual and intimate hygiene products brand Sirona has launched a new video campaign.

MAM Media and Advertising Ad Campaigns
DViO Digital wins creative, digital marketing mandate for Theobroma

Theobroma, a pan India chain of patisseries has chosen DViO Digital as its creative and digital marketing partner.

MAM Media and Advertising Account to build a global travel meets logistics business with their new partnership program, a first-of-its-kind peer-to-peer shipping and logistics facilitator platform that integrates travel with logistics, has been recognized as a ground-breaking idea since its very beginning.

MAM Marketing MAM
Camlin investing in product development, not TV ads

Be it the hilarious ad of its permanent markers that showed a dead man resuscitating back to life because of its indelible power or an emotional and sensitive ad of a little school kid sharing his colour set and sketchbook with a poor boy, Camlin India had once been in the race of most iconic ad...

MAM Marketing Brands
Consumer Confidence slips in February: Thomson Reuters-Ipsos PCSI Study

The India Primary Consumer Sentiment Index (Consumer Confidence), as measured by Thomson Reuters in partnership with Ipsos,has shown a downward slide in February by 0.9 percentage points.

MAM Marketing MAM
Praveen Kenneth launches ‘Ek Desh, Ek Hum’ platform

The founder of Law&Kenneth and former chairman Law&Kenneth | Saatchi & Saatchi, Praveen Kenneth, has launched the platform ‘Ek Desh, Ek Hum’ with a video that stresses on the ‘Stronger Together’ theme.

MAM Media and Advertising Ad Campaigns
SVG Media partners BirdEye to launch customer experience platform in India

SVG Media, a digital marketing platform from Dentsu Aegis Network Company, has announced a strategic partnership with US-based BirdEye in India.

MAM Media and Advertising Digital Agencies

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories