The Competition Commission of India (CCI) has approved US retail giant Walmart Inc’s $16 billion acquisition of online marketplace Flipkart.
Bentonville, Arkansas-based Walmart announced in May it was acquiring about 77 percent of Flipkart for roughly $16 billion in the biggest deal for India’s e-commerce sector, which Morgan Stanley estimates will grow close to an annual $200 billion in a decade.
The acquisition of Bengaluru-headquartered Flipkart will give Walmart, which runs 21 cash-and-carry stores in India.
“We will certainly move the court against the CCI’s decision,” Praveen Khandelwal, CAIT’s secretary general told Reuters. “CAIT has called an emergency meeting of its governing council on August 19 at Nagpur, where we will finalize our strategy for a nationwide movement.”
Walmart said in a statement after the CCI announcement that “We believe that the combination of Walmart’s global expertise and Flipkart will position us for long-term success and enable us to contribute to the economic growth”.