India’s CAIT Objects to Walmart-Flipkart Deal

An Indian trader body has raised objections to Walmart’s $16 billion acquisition of e-commerce firm Flipkart, though lawyers and sources said the complaint to the country’s antitrust regulator is unlikely to threaten the deal, Reuters reported. The Confederation of All India Traders (CAIT) filed an objection to the US retail giant’s buyout of roughly 77% of Bengaluru-based Flipkart, the body said on Monday, adding that the deal would create unfair competition and result in predatory pricing. However, multiple sources close to the deal said that CAIT’s filing with the Competition Commission of India did not pose a challenge to the acquisition. “It’s very unlikely the CCI will look into this complaint as both Flipkart and Walmart are not competing in India in relation to any products or services,” said a lawyer with knowledge of the deal. Walmart’s bid is aimed at competing with arch rival Amazon.com Inc in a major growth market and prompted protests from Indian trade and nationalist groups that say small traders will suffer.