Flipkart's acquisition by Walmart approved by CCI

The Competition Commission of India (CCI) has approved the proposed acquisition of Flipkart by Walmart.

The Bentonville-based company had announced in May that it plans to acquire 77% of Flipkart for $16 billion.

“We welcome the CCI’s decision," Walmart said in a statement. "Our partnership with Flipkart is testament to our continued confidence in our ability to contribute to this market. Flipkart is a prominent player in India with a strong, entrepreneurial leadership team that is a good cultural fit with Walmart. We believe that the combination of Walmart’s global expertise and Flipkart will position us for long-term success and enable us to contribute to the economic growth."

The deal had faced opposition from traders bodies as well as the Swadeshi Jagran Manch in recent months. The Confederation of All India Traders (CAIT) has said it will move the court against CCI's approval of the deal.

"It is most unfortunate that leaving aside the objections raised by CAIT with CCI, the commission has approved the deal," CAIT secretary general Praven Khandelwal said in a statement.

"We will move the Delhi high court and even Supreme Court if needed against the decision of CCI," he said.

The association had earlier said the deal will affect small businesses and bring in predatory pricing. Several traders and retailers had also taken to the streets across 500 cities last month in a protest organised by CAIT.