Flipkart-Walmart deal: What we know so far

Walmart Inc is acquiring Indian e-commerce player Flipkart, the chief executive of one of Flipkart`s biggest shareholders, SoftBank Group, said on Wednesday. According to Reuters, the US retail giant would be investing $16 billion in Flipkart for a controlling stake of more than 51 percent at a valuation of about $21 billion. This is said to be Walmart's biggest acquisition of a business and will translate into the world's biggest e-commerce deal.

"Last night, Japan time, it (Flipkart) reached final agreement that Walmart is purchasing Flipkart," Masayoshi Son said on a SoftBank earnings conference call, ahead of an expected announcement by Walmart-Flipkart later on Wednesday, as reported by Reuters.

Masayoshi Son said that the Walmart-Flipkart deal was sealed on Tuesday night, Japan Time in a conference call after SoftBank reported earnings. He also said that the company's investment in the Indian online marketplace had almost doubled.

Watch this Zee Business video here:

Meanwhile, World`s largest e-commerce player Amazon made an additional investment of Rs Rs 2,600 crore in its India operations, ahead of the Walmart-Flipkart deal.

Last week, rumors were also there that Amazon would made a formal offer to buy 60 per cent of the Flipkart's share and also proposed  $2 billion breakup fee to convince Flipkart to discuss its offer, according to the report.