Competition Commission Of India (CCI) has approved the proposal of Walmart to acquire Bangalore based Indian e-commerce giant Flipkart. CCI made the approval through twitter stating that the Walmart will be allowed to acquire 77% stake of the company for a price of US $16 Billion, making the valuation of company about US $20.7 Billion.

The acquisition will further the e-commerce fight between two US heavyweights Amazon and Walmart in India. Amazon is one of the biggest e-commerce player with the market capital of over US $900 billion, whereas Walmart has the title of biggest retailer in the world and also the largest private employer in USA followed by Amazon.

The acquisition is expected to give Walmart a stronghold in the Indian marketplace as it has been trying to enter world’s 7th largest economy with their 21 non-retail (wholesale) stores across the nation, but did not succeed well due to FDI regulations in retail business.

A retail trader body called Confederation Of All India Trader (CAIT) has criticized the CCI approval of Walmart-Flipkart acquisition stating it will create unfair competition and drive out local convenience store businesses.

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