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Report: Flipkart Board Picks Walmart Over Amazon

The tug of war over Flipkart is over.

Walmart has gotten the nod from Flipkart’s board to buy a 75 percent stake in the Indian online marketplace for around $15 billion, according to Bloomberg news sources.

The board approved the deal despite Amazon’s interest, which reportedly came with a bid for a 60-percent stake that people close to the deal estimated to be for $10 to $12 billion—plus Amazon sweetened the offer with a $2 billion break-up fee to ensure the company didn’t end up in Walmart’s hands.

The publication said the deciding factor for Flipkart was the likelihood that a deal with Walmart would pass regulatory scrutiny.

The insiders who spoke on the stipulation that they remain anonymous said the proposed transaction would require SoftBank Group to sell its stake, which is in excess of 20 percent, through an investment fund at a rate that values Flipkart at $20 billion. Google is said to be partnering with Walmart on the investment.

Currently Amazon is the No. 2 player in the country, trailing behind Flipkart but ahead of Walmart. Should the deal go through, it would see Walmart leapfrogging over Amazon into the No. 1 slot.

If the fine details of the acquisition are agreed upon, it’s expected that the transaction would be complete within 10 days.

Talk heated up about a possible acquisition in January when both Walmart CEO Doug McMillon and Marc Lore, head of its e-commerce business in the U.S., joined incoming Walmart International CEO Judith McKenna at Flipkart’s offices.

None of the players involved in the negotiations have gone on record yet.