By RJ Whitehead,10-Oct-2013
Wal-Mart appears to have lost patience with its fraught ambition to enter Indian consumer retail, after deciding to buy out its local partner, Bharti Enterprises, from their six-year-old joint-venture.
The agreement is subject to finalization of definitive agreements and receipt of the necessary regulatory approvals.The two companies say they have reached an agreement to independently own and operate separate business formats in India and discontinue their franchise agreement in the retail business.
American giant staying in cash-and-carry
Once everything is in order, Wal-Mart will acquire Bharti’s stake in Bharti-Walmart, giving the world’s biggest retailer 100% ownership of all 20 stores in its Best Price Modern Wholesale cash and carry business.
Wal-mart said it plans to continue to grow this business while working with the government and interested stakeholders to create more preferable conditions for foreign direct investment in multi-brand retail.
Reading between the lines, the American giant has pretty much put its consumer retail plans on ice in the face of its high-profile political struggles as politicians have held sway on the thorny issue of foreign direct investment in multi-brand retail.
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