Walmart Inc. said its $16 billion purchase of a 77% stake in Flipkart Online Services Pvt. Ltd. "does not give rise to competition concerns," according to a May 18 filing with the Competition Commission of India.
The U.S. company explained that its Indian subsidiary, Wal-Mart India Pvt. Ltd., is engaged in a wholesale business-to-business market, while Flipkart deals with the wholesale cash and carry of goods as well as online retail.
The deal is expected to receive the commission's approval since it does not create a monopoly in the broader retail landscape of India, Mint reported May 19, citing legal experts.
Walmart also previously disclosed that it may take Flipkart public as soon as four years after it closes the deal.