Walmart Can Buy Stake In Reliance Retail: Will Flipkart, Reliance Work Together To Beat Amazon?
There are some stormy changes taking place at the Mukesh Ambani led Reliance Industries Limited.
Rumors are abuzz that Reliance Industries is planning to sell a minority stake to Walmart Inc, which is also the owner of Flipkart.
Very recently, Reliance Industries Limited has gained the ownership of Big Bazaar for Rs. 24,713 crores as well.
Read on for more details about RIL’s decision of selling its stake to Walmart Inc right here!
Reliance Industries Offers To Sell Minority Stake; Walmart Eager To Buy
As reported by The Morning Context, Walmart is discussing selling its minority stake to Walmart.
The news was revealed by one of the executives who is familiar with the development.
Apparently, Walmart was one of the very first candidates to offer to buy the stake in Reliance, and now, the companies are already in talks about the same.
Since April, RIL has sold more than 33 percent stake in its Jio Platforms unit raising Rs 1,52,056 crore from marquee investors and major names like Google and Facebook.
It also took over the Future Group’s Big Bazaar for Rs 24,713 crore and is now the owner of Future Group’s Big Bazaar, FBB, Easyday, Central, Foodhall formats, across India.
If Reliance does sell its minority stake to Walmart, the industry will be able to gain a strong foothold in the e-commerce industry for its JioMart, the online e-commerce platform launched by Reliance.
As per some analysts, this deal would boost Reliance’s presence in the retail and warehousing area by as much as 80%.
Walmart To Take On Amazon By Collaborating With Reliance
We all know that Walmart Inc already owns 81% of Flipkart, another e-commerce giant in India, which the former bought for $16 billion in 2018. Walmart is expected to add 4.1% to Reliance’s market share of organized retail and give it a boost to reach 17.8%.
And now, with a stake in RIL, Walmart will be able to compete strongly against Amazon together with Flipkart and RIL.
Analysts also believe that with Reliance growing at such huge scales, competitors would be better collaborating with the behemoth, rather than competing.