Reports claims Amazon trying to Buy 60 % shares in Flipkart

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Amazon.com has made a formal offer to buy a 60 percent stake in Indian online retailer Flipkart, CNBC-TV18 reported on Wednesday, citing sources.

Amazon also offered Flipkart a breakup fee of $2 billion (roughly Rs. 13,300 crores), the TV channel reported. Amazon’s bid is likely to be on par with Walmart’s bid for the Indian e-commerce company, CNBC-TV18 reported.

Flipkart’s investors and founders are in favour of the offer with Walmart, with founder Sachin Bansal overseeing final negotiations with Walmart, CNBC-TV18 said.

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 package to buy a majority stake in Flipkart by the finish of June.

A cope with Flipkart would step up the Walmart-Amazon battle for a more impressive share of India’s fledgling e-commerce market, which Morgan Stanley estimates will soon be worth $200 billion (roughly Rs. 13.33 lakh crores) in a decade.

The Walmart global team may arrived at India soon to close the offer, the report added.

A spokesman for Walmart declined to comment, while Amazon said it does not offer comments on rumours and speculation.

Flipkart did not immediately respond to an email seeking comment.

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