Flipkart's $16 Billion Walmart Acquisition Gets CCI Approval

Flipkart Launches Smart TVs, Home Appliances Under Its New MarQ Label

The Flipkart-Walmart acquisition was announced dorsum in May this twelvemonth, but it is simply now that India's antitrust regulator Competition Committee of India (CCI) has given the $sixteen billion deal its seal of approval.

This much-awaited decision has finally received blessing despite the constant protests by India's trader's association CAIT, who fears that Walmart entry in the country could mean an end for the small-scale retailers. The CCI tweeted out the confirmation of the deal from their official Twitter handle earlier on Midweek evening.

@CCI_India approves proposed conquering of Flipkart Private Limited by Wal-Mart International Holdings, Inc

— CCI (@CCI_India) August viii, 2018

Though CCI didn't elaborate any farther on its determination, its order for this acquisition deal said that Flipkart's discounting practices volition need to be kept under check and dealt with separately. They believe it'southward an event of utmost significance, peculiarly with the ongoing draft policy work that places restrictions on discounts offered by online marketplaces.

Walmart is, however, elated that it tin finally close the deal and have on its arch-nemesis in the fastest growing market in the world. In an official statement, it welcomes the CCI's decision and says it is going to keep contributing to the Indian market via its partnership with Flipkart. It further adds,

"Flipkart is a prominent histrion in Bharat with a strong, entrepreneurial leadership team that is a skilful cultural fit with Walmart. Nosotros believe that the combination of Walmart'southward global expertise and Flipkart volition position u.s. for long-term success and enable united states of america to contribute to the economic growth."

The CAIT (Confederation of All Republic of india Traders) isn't content with the decision and has at present decided to object the approval in the High Court, followed by the Supreme Courtroom if justice isn't served. CAIT secretarial assistant general Praveen Khandelwal in an official argument said,

It is about unfortunate that leaving aside the objections raised by CAIT with CCI, the commission has approved the bargain. We will move the Delhi high courtroom and fifty-fifty Supreme Court if needed against the decision of CCI.

Khandelwal had previously said that the acquisition circumvents laws and volition offend FDI policy once it is approved, creating an uneven level playing field for traders in India. Now, we'll need to await and run into the steps taken by the trader'south clan to effort and block the bargain, which seems to be done and dusted.

Flipkart has already started expanding its offerings, with the contempo launch of Flipkart Plus (which volition become up against Amazon Prime), plans to shut downwardly eBay India and launch their new used goods platform to have on OLX/ Quikr, and the launch of Flipkart Supermart to enter the grocery delivery market. And so, does the future look bright for Flipkart? Let usa know your thoughts in the comments beneath.