 Source: REUTERS / Brendan McDermid Walmart announced its largest deal ever on Wednesday as it acquires roughly 77 percent of Indian e-commerce company Flipkart. Walmart will pay $16 billion in the acquisition as it moves the fight against Amazon into an important growth market. Amazon's share in the Indian market was 27% in 2017 while Flipkart's was 35%, and the Indian e-commerce market as a whole is expected to be worth $200 billion a year within a decade.
Historically, Walmart has suffered internationally. Walmart's previous largest deal was $10.8 billion for Asda in Britain, which it has sold to J Sainsbury - indicating a retreat from the British market. It is expected that Walmart may also attempt to sell off its majority stake in its operations in Brazil. International business as a whole brought in less than a quarter of Walmart's total revenue of $500 billion in the fiscal year 2018. With this purchase, Walmart is declaring a renewed focus on key international markets. Flipkart had reported sales of $4.6 billion last year and sells consumer goods online. Walmart has stated that it expects Flipkart's payments, logistics and apparel business to provide them with new areas of growth. Click here to read the full article.
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