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Flipkart, Walmart India top executives meet CCI to explain biz activities

In their meeting with CCI member Sudhir Mittal, the officials of the two companies briefly explained about their individual businesses, development programmes and other activities

Press Trust of India  |  New Delhi 

Walmar, Flipkart
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Top executives of and on Wednesday met fair trade regulator to explain their activities in the country, days after submitting an application seeking approval for their USD 16-billion mega-merger deal.

While there was no official word on the meeting, sources said it was a "courtesy call" by the executives of the two during which they also apprised the regulatory authority of Walmart's global sourcing from India, including from the farmers, and its work towards Kirana stores and supplier development programmes.

Those present in the meeting included and the company's Rajneesh Kumar, besides and its group R Baweja, sources said.

In their meeting with member Sudhir Mittal, the officials of the two briefly explained about their individual businesses, development programmes and other activities.

The meeting comes days after approached the (CCI) for approval of its proposed acquisition of a majority stake in In their application filed last week, the two have said the acquisition, proposed through Walmart International Holdings, deal doesn't raise any competition concerns.

beyond a certain threshold require the approval of the

In their plea, Walmart has told the regulator that Flipkart is a Singapore-based investment holding firm, which along with its direct and indirect subsidiaries, both in India and elsewhere, is primarily engaged in the of wholesale cash and carry of goods and providing marketplace based platforms to facilitate trade between customers and sellers in India.

According to the notice submitted to the CCI by Holdings, the proposed transaction will be effected pursuant to the share purchase agreement and the share issuance and acquisition agreement entered into on May 9 by and among Walmart's subsidiary and Flipkart.

Retailers have joined hands to approach CCI against USD 16 billion Walmart-Flipkart deal as they apprehend that it would lead to massive job loss and be a "nightmare for retail trade" of the country.

Earlier this week, traders body CAIT also said it will approach the CCI to file objections on the proposed Walmart-Flipkart deal, claiming that the agreement would lead to an uneven playing field and massive job losses.

On the other hand, an has already moved the CCI against Flipkart India Pvt Ltd, a wholesale company, for allegedly abusing its dominant position on Flipkart's

Walmart seeks to acquire 77 per cent stake in the firm with a buyout of USD 16 billion.

Opposing the deal, the Confederation of All India Traders (CAIT) has also written to Suresh Prabhu, seeking to know the steps being taken by the government to scrutinise the deal.

CAIT alleged that the deal involves important issues related to FDI policy, cyber security, apprehension of using e-commerce for entering by circumventing the

First Published: Wed, May 23 2018. 20:07 IST