Indian business conglomerate Bharti Group is in advanced talks to form a cash-and-carry joint venture with French retailer Carrefour in India, having broken off its six-year strategic partnership with US Walmart, reports India’s Economic Times.
Bharti and Carrefour are expected to clinch the deal later this month or by early May, with Bharti expected to have a stake of up to 74 per cent in the joint venture, sources told the paper.
The venture will mark a return to the cash-and-carry business for Bharti, which sold its 50 per cent stake in the Walmart venture to the US company in October 2013.
Carrefour's existing cash-and-carry business in India will likely be absorbed into the venture, the paper said.
The Bharti group was also in talks with Japan's largest retailer Aeon for a possible tie-up, but decided to pursue its business interests with Carrefour.
The negotiations have gained momentum after the Indian political party BJP said it would not favour foreign direct investment in multibrand retail, the Economic Times said. Opinion polls have suggested that the party will be best placed to form the next government after the ongoing general elections.
'More or less, it is now clear that FDI in multi-brand retail is unlikely to get a boost in the new government as many political parties have announced their opposition. In the given political environment, both sides have the requisite clarity on the future course of business,' a source told the paper.
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