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Walmart, Bharti part ways New Delhi, October 9 As part of the agreement, Walmart will buy out the Indian partner from their 50:50 wholesale cash and carry joint venture - Bharti Walmart, for an undisclosed amount. In a joint statement, the two companies said they have reached an agreement to independently own and operate separate business formats in India and discontinue their franchise agreement in the retail business. While Walmart would continue its cash and carry business in which 100 per cent FDI is allowed, Bharti will concentrate on the retail format of EasyDay stores. The joint venture which was set up to aggressively invest in the format of FDI in multi brand retail which has been opened to the tune of 49 per cent will not be doing so. The multi brand retail template has not yet seen any investments as even after several relaxations, foreign retailers are still waiting. “Upon receipt of required clearances, Walmart would acquire Bharti’s stake in Bharti Wal-Mart, a joint venture between Bharti and WalMart, giving Wal-Mart 100 per cent ownership of the Best Price Modern Wholesale cash and carry business," it said.Commenting on the development, Bharti Enterprises Vice Chairman and MD Rajan Bharti Mittal said: “Bharti is committed to building a world-class retail venture and will continue to invest in Bharti Retail across all formats. We believe that with our current footprint of 212 stores, we have a strong platform to significantly grow the business and delight customers.” As part of the proposed transactions, Bharti will acquire the $ 100 million worth 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 investment in Cedar by Wal-Mart is being investigated by the Enforcement Directorate following allegations of violations of norms. End joint venture in retail
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Bharti Enterprises and Walmart Stores, the world’s biggest retailers, today ended their partnership in the Indian retail sector. 