The deal also includes a cloud collaboration which, as per Flipkart, will help the ecommerce major expand its business and advance the modernisation of its digital infrastructure.
The Competition Commission on Tuesday granted approval to Alphabet's arm Shoreline International Holdings LLC to acquire a stake in Walmart group firm Flipkart.
Shoreline International Holding is a wholly-owned subsidiary of Google's parent firm Alphabet Inc. It is a holding company and does not own or operate any Google products or services.
"The proposed transaction comprises an investment through subscription of shares of Flipkart Pvt Ltd (Target) by Shoreline International Holdings LLC (Acquirer) and an arrangement between an affiliate of the acquirer and the target's subsidiary for the provision of certain services,"
the regulator said in a release.
"Commission approves transaction involving subscription of shares of Flipkart Pvt Ltd by Shoreline, an Alphabet, Inc subsidiary," the regulator said in a post on X.
Flipkart is a subsidiary of Walmart Inc and ultimately belongs to the Walmart Group. It is primarily engaged in the business of wholesale cash and carry of goods and providing marketplace-based e-commerce platforms to facilitate trade between customers and sellers in India.
In May this year, Walmart-owned Flipkart has closed a funding round of about $1 billion that includes $ 350 million from Alphabet's Google.
The funding valued Flipkart at $35-36 billion. The deal had been awaiting approval since May this year. Flipkart at that time said that the investment is subject to regulatory and customary approvals from both parties.
US retail giant Walmart, which holds an 85 per cent holding in the Indian ecommerce major Flipkart, has invested $ 600 million in the fundraise that kicked off last year.
In its order, the CCI said that Google's investment in Flipkart involved "an extremely small and non-controlling acquisition of shareholding" and that the two parties would continue operating independently after the transaction.
Source: Business Standard, Times of India
