Seeking approval for the mega-merger of $16-billion deal, top executives of Walmart India and Flipkart met fair trade regulator Competition Commission of India (CCI) to explain their activities in the country.
Sources termed the meeting a "courtesy call" by the executives of the two companies 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.
Among the people present in the meeting were president and CEO Krish Iyer and the company's senior vice president and chief corporate affairs officer Rajneesh Kumar, besides Flipkart CEO Kalyan Krishnamurthy and its group legal head R Baweja, sources said.
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.
The meeting convened after the Walmart’s approach to CCI for the approval of its proposed acquisition of a majority stake in e-commerce major Flipkart. The two companies had submitted acquisition report to clarify all possible competition concerns regarding the acquisition deal.
Mergers and acquisitions beyond a certain threshold require the approval of the CCI.
Walmart has pleaded to 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 business of wholesale cash and carry of goods and providing marketplace based e-commerce platforms to facilitate trade between customers and sellers in India.
According to the notice submitted to the CCI by Walmart International 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.