Bharti, Walmart split, to pursue business independently

Finally Bharti and Walmart have put an end to the

speculations over their partnership. Through a joint statement, they have officially announced that they are parting ways and will pursue retail business in India independently.

Post the formal split, Walmart will takeover Bharti Group’s stake in the 50:50 wholesale joint venture that was formed six years back. Under the joint venture, Bharti had cash-and-carry stores under the ‘Best Price Modern Wholesale’ brand. Now the retail entity will become a 100 percent subsidiary of the American retail giant.

On the other hand, Bharti will acquire the Compulsory Convertible Debentures (CCDs) held by Walmart in Cedar Support Services, a company owned and controlled by Bharti that operates front-end retail stores under the brand name ‘Easy Day’. Though Wal-Mart could have converted the CCDs into equities worth over Rs 600 crores, which were lent to the Bharti Group in 2010 through a deal but the retailer has decided against it.

Of late, the Walmart’s movement in the country did signal at the giant looking at going solo with its wholesale retail business in India. With the Indian government waiting to get investment proposals in multi-brand retail to improve economy, Walmart’s issues with the mandatory sourcing norms are also being sorted out.