Executive Summary

• On May 9, Walmart announced the signing of a definitive agreement to invest $16 billion for a 77% stake in Flipkart, a leading online retailer in India. The company said it supports Flipkart’s ambition to become a publicly listed subsidiary in the future.
• Walmart believes the acquisition will create significant long-term value for shareholders through entering a critical growth market, acquiring a leader in e-commerce, acquiring local talent with global expertise and achieving long-term growth.
• The investment includes $2 billion of new equity funding, supported by newly issued debt and cash on hand. The company expects the investment to reduce FY19 EPS by $0.25–$0.30 and FY20 EPS by $0.20, assuming a close in the second quarter of this fiscal year.