Tata Group is looking to pick a 49 percent stake in Walmart India’s cash-and-carry ‘Best Price Modern Wholesale’ business, a move that will fast-track the business house’s retail expansion plans, The Times of India reports.
The agreement was to be announced by Walmart International president and CEO Judith McKenna who was in Delhi early December, but the deal could not be finalised, a source told ToI.
The recent decision of the National Company Law Appellate Tribunal to reinstate Cyrus Mistry as Tata Sons Chairman could add to the delay, the source added.
Moneycontrol could not independently verify the report.
This news follows speculation since early 2019 of Tata mulling a joint venture (JV) with the US retail giant.
The deal will bring funds for Walmart India and enable Tata’s entry into India’s domestic cash-and-carry business, another source said.
Walmart India and Tata Group did not respond to queries.
If it comes through, this would be Walmart’s second union with an Indian company in the cash-and-carry segment. It had a JV with Bharti Enterprises in 2007, which fell through in 2013.
The retailer operates 28 ‘Best Price’ stores in India and owns a majority stake in Flipkart Group (Flipkart, Myntra). This will be Tata’s first foray into the segment.
News Source: Moneycontrol