Bharti, Walmart end India JV, to operate separately
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NEW DELHI: The world’s largest retail chain, Walmart Stores Inc, and
Sunil Mittal-led Bharti Group have called off their six-year-old
alliance in India, both companies said in a joint statement issued on
Wednesday, bringing the curtains down on a troubled deal marred by
government-probes and allegations of corrupt practices.
Walmart will acquire the Indian partner’s stake in the 50:50 wholesale venture with Bharti group, which was set up in 2007 and runs cash-and-carry stores under the Best Price Modern Wholesale brand, making it a 100% subsidiary of the US giant.
HT had first reported on September 9, 2013 about the parting of ways by the two partners.
Walmart will acquire the Indian partner’s stake in the 50:50 wholesale venture with Bharti group, which was set up in 2007 and runs cash-and-carry stores under the Best Price Modern Wholesale brand, making it a 100% subsidiary of the US giant.
“They (both companies) have reached an agreement to independently own and operate separate business formats in India and dis-scontinue their franchise agreement in the retail business. The agreement is subject to finalisation of definitive agreements and receipt of the requisite regulatory approvals,” the joint statement said, ending weeks of speculationn about the likely fallout.
Arvind Kumar Pathak
PGDM 3rd SEM
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