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.
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