Walmart will acquire Bharti Enterprises’s 50 per cent stake in Bharti Walmart Pvt Ltd, giving the US retail giant 100 per cent ownership of the Best Price Modern Wholesale brand.
The companies announced they were ending their six-year partnership earlier today (9 October), with Walmart’s takeover subject to the finalisation of definitive agreements and receipt of requisite regulatory approvals.
The announcement ends months of uncertainty about the future of the joint venture, with speculation mounting Walmart was set to downsize its operations in the Asian nation.
Bharti Walmart currently operates 19 Best Price Modern Wholesale stores around India, with Walmart pledging to continue growing the cash and carry business while pursuing foreign direct investment (FDI) opportunities in the country’s multi-brand retail sector.
“Given the circumstances, our decision to operate independently will be beneficial to both parties,” Scott Price, president and CEO of Walmart Asiam, was quoted as saying by The Hindu Business Times.
“Walmart is committed to businesses that serve our members and provide good returns for our shareholders, and we will continue to advocate for investment conditions that allow FDI multi-brand retail in India.”
As part of the deal, Bharti will acquire the compulsory convertible debentures (CCDs) held by Walmart in Cedar Support Services, a company Bharti owns and controls.
Bharti will continue to operate its own retail stores, with vice president Rajan Bharti Mittal saying the company was dedicated to the development of its brand.
“Bharti is committed to building a world-class retail venture and will continue to invest in Bharti Retail across all formats,” Mittal said.
“We believe that with our current footprint of 212 stores, we have a strong platform to significantly grow the business and delight customers. We wish Walmart the very best for the future.”
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