Amazon offers to buy 60 per cent stake in Flipkart

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Amazon's offer came at a time when talks about Walmart-Flipkart deal are still intact.

Amazon has offered a $2 billion breakup fee as part of its bid, the report said.

Flipkart's largest shareholder, SoftBank was earlier believed to be pushing other investors to wait for a rival offer for Flipkart from Amazon.

Flipkart's board had appeared to be leaning toward Walmart over Amazon because it thinks the deal will have fewer hurdles.

Flipkart is already in talks with Walmart, the American supermarket retailer, to acquire a majority stake thought to be worth up to $12 billion.

Ahead of the buyout of controlling stakes by global retail giant Walmart, Flipkart is reportedly preparing to buy back shares from small investors as it seeks to regain its private limited company status in Singapore.

The Flipkart deal would also propel the Bentonville, Arkansas-based retail behemoth to hasten its online expansion into remaining Asian markets, the sources added.

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It is interesting to see how all this pans out and if Flipkart considers the offer from Amazon, or accepts Walmart's offer to take on Amazon head-on in what is now a fiercely fought battle in the Indian e-commerce arena.

Flipkart and SoftBank declined to comment on the report.

The booming India e-commerce market is estimated to have touched $33 billion in 2017-18.

Amazon has emerged as new contender for Indian e-commerce giant Flipkart. The price of existing shares would value the company at around $12 billion. But the Japanese company has now agreed to sell the online retailer to Walmart as all the other key shareholders, including Tiger Global Management, Naspers and Accel Partners, were firm in their preference for Walmart, the people said. According to reports, Amazon Inc has formally made the offer.

Sources with knowledge of the proceedings told Times of India that SoftBank has been favouring the merger with Amazon instead of Walmart.

Ecommerce major Amazon has offered to buy 60% stake in Flipkart.

In an interview with Reuters on Tuesday, McKenna said India was a "growth market", and downplayed analyst criticism that the company has been slow to move in the country.