MUMBAI/BENGALURU (Reuters) - Indian e-commerce firm Flipkart’s board is yet to finalize a deal to sell a stake to Walmart Inc, two sources with direct knowledge of the matter said on Friday, adding that a deal could just be days away.
Bloomberg reported earlier on Friday, citing unnamed sources, that Flipkart’s board had approved a deal to sell a stake of about 75 percent in the company to a group led by U.S. retail giant Walmart for about $15 billion.
Walmart is in advanced talks with Flipkart to acquire a controlling stake in the Bengaluru-based online marketplace at a valuation of at least $18 billion, Reuters has previously reported.
A third source told Reuters that while Flipkart’s board has “in-principle” approved engaging with Walmart based on the terms of an offer before them, taxation related concerns and a few other issues need to be resolved.
Sources have said that Amazon.com Inc has shown an interest in buying Flipkart, India’s top homegrown e-commerce firm, but a deal with Walmart is much more likely to go through. Amazon is Flipkart’s biggest rival in India.
The first two sources said Alphabet Inc is also likely to invest in Flipkart alongside Walmart, but terms of the deal may change. Japan’s SoftBank Group, the biggest investor in the Indian firm through its private equity fund, is considering selling its stake as part of the deal if the price is right, another source said.
Flipkart and Alphabet did not respond to Reuters requests seeking comment. Walmart and SoftBank declined to comment.
Flipkart, together with its fashion units Myntra and