Walmart ends collaboration with Bharti Enterprises to operate independently in India
The two companies have ended their joint venture for retail and have decided to independently own and operate separate business formats in India.
As part of the agreement, Walmart will Bharti’s stake in the joint venture -- Bharti Walmart Private Limited – giving the American retailer 100% ownership of its cash and carry business.
“Given the circumstances, our decision to operate independently will be beneficial to both parties,” said Scott Price, president and CEO of Walmart Asia.
The company pledged that it will continue to make important social and environmental contributions to the country. “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,” said Price.
Walmart will expand the retail business in India by working with the Indian government and interested stakeholders.
Meanwhile, Bharti will acquire the Compulsory Convertible Debentures (CCDs) held by Walmart in Cedar Support Services, a company owned and controlled by Bharti.
Bharti Retail will continue to operate ‘easyday’ retail stores across all formats and invest in and grow the business, the Indian company said.
“Bharti is committed to building a world-class retail venture and will continue to invest in Bharti Retail across all formats,” said Rajan Bharti Mittal, vice chairman and MD, Bharti Enterprises.
Desi Events
