The
two American giants’ fight for Indian territory has started to intensify.
Amazon and Walmart have been competing to acquire majority stake in India’s
largest e-commerce company, Flipkart. Recent developments suggest Walmart has
proposed a $10-12 billion offer for a 51% stake; the deal could close by the
end of June. On the other hand, Amazon has marked its presence by attaching a
breakup fee of up to $2 billion. A breakup fee is a penalty established in the
deal process that requires payment if the purchaser or seller backs out. In
this case, Amazon will pay a hefty fee if the deal is incomplete for whatever
reason. Nonetheless, the deal structures emphasize the seriousness of both
parties. [more...]
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