Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
2-min read

Competition Commission Clears $16 billion Walmart-Flipkart Deal, Traders' Body to Move Court

The approval comes less than three months after the announcement of the mega deal, which is also being opposed by various trader organisations.

PTI

Updated:August 8, 2018, 9:25 PM IST
facebookTwitterskypewhatsapp
In case of Walmart-Flipkart deal, the withholding tax pertains to the capital gains made by the shareholders of Flipkart.
In case of Walmart-Flipkart deal, the withholding tax pertains to the capital gains made by the shareholders of Flipkart. (Network18 creative)
Loading...

New Delhi: The Competition Commission on Wednesday said it has cleared US retail giant Walmart's proposed acquisition of Flipkart, a deal estimated to be worth USD 16 billion.

The approval comes less than three months after the announcement of the mega deal, which is also being opposed by various trader organisations.

In May, Walmart announced acquisition of 77 per cent stake of Flipkart in its biggest takeover till date.

"@CCI_India approves proposed acquisition of Flipkart Private Limited by Wal-Mart International Holdings, Inc," the regulator said in a tweet.

Mergers and acquisitions beyond a certain threshold require the approval of the Competition Commission of India (CCI).

Welcoming the regulator's decision, Walmart said it remains committed to contributing to the Indian economy by supporting smallholder farmers, manufacturers, and its Kirana customers.

"Flipkart is a prominent player in India with a strong, entrepreneurial leadership team that is a good cultural fit with Walmart.

"We believe that the combination of Walmart's global expertise and Flipkart will position us for long-term success and enable us to contribute to the economic growth," it said.

Traders' body CAIT, which has been opposed to the deal, described the CCI approval as "most unfortunate" and said it would approach the court against the decision.

In June, more than 100 trader organisations opposed the deal stating it will cause "irreversible damage" to small traders and endanger jobs for thousands.

As per the notice submitted to the CCI, the acquisition of majority stake in Flipkart will be done through Wal-Mart International Holdings.

The proposed transaction would be effected pursuant to the share purchase agreement and the share issuance and acquisition agreement entered into on May 9 by and among Walmart's subsidiary and Flipkart, the notice said.

In June, Walmart said that it expects to close the deal this year.

"In May 2018, the company announced it will pay approximately USD 16 billion in exchange for approximately 77 per cent of the outstanding shares of Flipkart Group (Flipkart). The investment includes USD 2 billion of new equity funding.

"...closing is expected later this calendar year, and is subject to regulatory approval," the American retail major had said in a filing to the US Securities and Exchange Commission (SEC).

The US India Strategic Partnership Forum (USISPF) said the deal is good for India as a whole.

The deal will strengthen the agriculture supply chain and create new skilled jobs, supporting the 'Make in India' initiative, USISPF President and CEO Mukesh Aghi said in a statement. Walmart is a USISPF member.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
Maruti Suzuki 6,055.05 -1.23
Bajaj Finance 3,443.60 2.23
BPCL 368.75 -2.96
Reliance 1,209.65 1.02
Yes Bank 65.25 0.23
Company Price Change %Gain
Maruti Suzuki 6,053.00 -1.27
HDFC 1,991.95 -0.23
Yes Bank 64.70 -0.69
HEG 1,245.55 -11.23
Tata Motors 121.30 -0.53
Top Gainers
Company Price Change %Gain
Tata Steel 354.35 2.73
JSW Steel 221.20 2.31
Bajaj Finance 3,442.95 2.21
Vedanta 148.00 1.79
Bajaj Finserv 7,253.30 1.44
Company Price Change %Gain
Tata Steel 354.00 2.77
Bajaj Finance 3,445.50 2.37
Vedanta 147.95 1.65
Kotak Mahindra 1,468.20 1.32
SBI 277.00 1.13
Top Losers
Company Price Change %Gain
Yes Bank 62.75 -3.61
Britannia 2,615.00 -2.88
UPL 547.40 -2.82
Eicher Motors 15,972.00 -1.92
ONGC 127.70 -1.54
Company Price Change %Gain
Yes Bank 62.80 -3.61
ONGC 127.60 -1.62
Coal India 194.40 -1.62
Maruti Suzuki 6,053.00 -1.27
Sun Pharma 416.95 -0.88

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results