Walmart has been awaiting to receive the approval of The Competition Commission of India for the Flipkart deal. The Confederation of All India Traders (CAIT) had announced to hold dharnas across 1,000 places today (2 June) against the deal.
New reports have revealed that the Walmart will arrange funds for the Flipkart deal by June 7, 2019. After announcing the acquisition of Indian ecommerce giant Flipkart, the global retail company has been busy arranging funds through selling bonds for the deal.
The Confederation of All India Traders had earlier announced that it would hold dharnas at 1,000 places across the country today. They had earlier asked the government to stop the deal. The stakeholders of the biggest ecommerce deal in the world, have been addressing competition concerns raised by the Competition Commission of India. A deadline of March 9, 2019 had been set in the share purchase agreement as revealed from the documents filed for the mega bond issue to finance the transaction. The termination rights have been negotiated. Walmart started the process of selling $16 Billion worth bonds in June this year in order to fund its 77% acquisition of Flipkart. The bonds were offered as both fixed and floating rate notes in nine parts. The company earlier claimed that it would close the deal by the end of this year.
A Walmart spokesperson stated that the company is working with the authorities in India and is hopeful of timely approval. He added that they are still expecting to close later this calendar year, subject to regulatory approval. He told that the date in the 8-K filing on June 21, 2018, is related specifically to the bonds recently issued. Walmart addressed the CCI’s concerns by stating that the pan-India market for B2B sales is relevant for the proposed transaction.