Amazon.com Inc. has made a formal offer to buy a 60% stake in Indian online retailer Flipkart, citing sources.
Amazon also offered Flipkart a breakup fee of $2 billion, the TV channel reported. Amazon’s bid is likely to be on par with Walmart Inc’s bid for the Indian e-commerce company.
Flipkart’s investors and founders are in favor of the deal with Walmart, with founder Sachin Bansal overseeing final negotiations with Walmart.
Amazon is also seeking a non-compete agreement with Flipkart’s founders, the report added.
Reuters in April reported that Walmart was likely to reach a deal to buy a majority stake in Flipkart by the end of June.
A deal with Flipkart would step up the Walmart-Amazon battle for a bigger share of India’s fledgling e-commerce market, which Morgan Stanley estimates will be worth $200 billion in a decade.
The Walmart global team may come to India soon to close the deal, the report added.
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