Amazon.com Inc. (NASDAQ: AMZN) reportedly will make an offer to acquire India’s largest e-Commerce, Flipkart, who is already in advanced talks with Walmart Inc. (NYSE: WMT) to sell majority of its stake, according to Mint, citing two sources familiar with the matter.
Walmart is in talks with Flipkart to purchase a 55 percent stake in the Indian business through a mix of primary and secondary share purchases in a deal totaling up to $21 billion, said the sources.
Flipkart investors, Tiger Global Management, Accel Partners, Naspers, IDG Ventures and others are expected to sell their shares.
The sources said that the deal with Walmart is more likely to go through than Amazon’s potential bid. A merger between Amazon and Flipkart could possibly cause a monopoly in the Indian market.
The deal for Walmart or Amazon would allow the two American-owned businesses to enter into India’s market, which is the third largest Asian market, giving either or a whole new market ground.
Flipkart, founded by former Amazon employees, Sachin Bansal and Binny Bansal back in 2007, control nearly 40 percent of India’s online retail market, according to data by researcher Forrester.
Flipkart began just like Amazon selling books, but soon rapidly developed into a retail giant and began to sell various products. The company is ahead of Amazon in the Indian market, as the two compete against each other.
Amazon did not comment on the matter.