After government of India approved 51% in FDI retail Multi branding, the two companies have come forward to make business in retail segment. However, Bharti and Wal-Mart are already in partnership in wholesale cash and carry venture.
Bharti Enterprises' Vice Chairman and MD Rajan Bharti Mittal, speaking to a media, said "Talks have started...when they had an opportunity to go 100% they went 50-50 with Bharti. Now, with the opening of the front-end, discussions are on the table and hopefully that relationship we have enjoyed in the last five years will continue," Mittal told a TV channel when asked if Bharti supported a 51% stake for the US company. Pressed further on the possibility of Bharti retaining 50% stake and Walmart not going for majority stake in the multi-brand venture, Mittal said: "That is what I am trying to say."
Raj Jain, managing director & CEO of Bharti Wal-Mart, the wholesale cash-and-carry joint venture, had told TOI that the retail behemoth would prefer a majority stake in a new front-end retail company for which Bharti Enterprises is a "natural partner". "Under the policy, a foreign retailer can have up to 51% stake and our objective would be to have that," Jain had said.
The shares of the company was seen trading lower by 0.50% at Rs 263 on BSE in early morning trade at 9.20 am IST.