Amazon offers to buy 60% stake in Flipkart, pay $2 bn breakup fee: Report

As a new contender for Indian online retailer Flipkart, Amazon.com Inc has made a formal offer to buy a 60 per cent stake in e-commerce giant on Monday.

Amazon also offered Flipkart a breakup fee of $2 billion, CNBC-TV18 reported on Wednesday, citing sources. According to the sources, the giant is also seeking a non-compete agreement with Flipkart's founders.

The offer is likely to be on par with Walmart Inc's bid for the e-commerce company, it reported.

Business Standard in April had reported that with Walmart eyeing a 55-70 per cent stake in Flipkart, most smaller investors would be selling their stakes at a premium in secondary share sales. More than 30 smaller investors would make $20-200 million because most of them would be exiting after the merger.

While it is not known how much SoftBank Group might offload of its 20.79 per cent in Flipkart, industry experts say it might sell around 10 per cent to Walmart for about $2 billion.

Representatives at Amazon, Flipkart and Walmart were not immediately available for comment.

According to CNBC report, the e-commerce major's investors and founders are in favour of the deal with Walmart, adding that Flipkart founder Sachin Bansal was in the US last week to oversee final lap negotiations with Walmart.