The Competition Commission of India (ICC) has approved the US retail giant Walmart $16 billion (about Rs. 1.09 crores of lakh) acquisition online market Flipkart, increase competition for Amazon.com in the booming e-commerce market.
Walmart, a Bentonville, Arkansas-based company, announced in May that it was acquiring about 77 percent of Flipkart for about $ 16 billion in India’s e-commerce sector. crores) in a decade.
The ICC approved Walmart’s proposed acquisition of Flipkart, the agency said in a Twitter post on Wednesday.
The acquisition of Flipkart, headquartered in Bangalore, will enable Walmart, which operates 21 cash-and-carry stores in India, to establish itself as the third largest economy in Asia. in the retail sale of bricks and mortar.
A local merchant body, the Confederation of Indian Traders (CAIT), opposed the Walmart-Flipkart agreement, saying that this combination would create unfair competition and destroy local convenience stores.
On Wednesday, the CAIT said it was disappointed by the approval of the ICC.
“We will certainly move the court against CCI’s decision,” CAIT Secretary General Praveen Khandelwal told Reuters. “The CAIT convened an emergency meeting of its board of directors on August 19 in Nagpur, where we will finalize our strategy for a national movement.”
Walmart has already stated that it supports local manufacturing in India by sourcing from small and medium suppliers, farmers and women-led businesses. “We believe that the combination of Walmart’s global expertise and Flipkart will position us for long-term success and allow us to contribute to economic growth,” Walmart said in a statement after the announcement of CCI.