Major Flipkart Investor and CEO of Japan’s SoftBank, Masayoshi Son reportedly met Walmart's CEO Doug McMillon to discuss the deal between the two companies, CNBC-TV18 reported. Sources told the channel that Bain & Co has been roped in to work out a detailed integration plan.
A report in The Economic Times today suggested Walmart is likely to make an offer to buy 86 percent in Flipkart, and the deal is expected to be signed next week
It said the US-based retail giant might improve on its earlier offer, which valued the company at about USD 10-12 billion. The deal could value Flipkart at about USD 18 to 20 billion, the report said.
Moneycontrol could not independently verify claims made in the reports.
Walmart's final shareholding in the Bengaluru-based company is likely to be closer to 51 percent than 86 percent, a source told the paper. This is because investors are unlikely to sell their entire stakes.
The report also said Tiger Global Management and SoftBank Corp are expected to sell a part of their stakes.
A Bloomberg report, too, suggests the two companies will give up a significant part of their stake and Walmart could buy 60 to 80 percent of Flipkart.
The question, who will run the business after the deal, is yet to be answered, the Bloomberg report said.
Walmart will retain Flipkart's current top management team, a Mint report suggested last week.
The deal is reportedly in the final stages of negotiation. Discussions had begun last year.
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