After weeks of speculation, Bharti Enterprises and Wal-Mart Stores Inc had announced that they are going on their separate ways for operations in the retail sector. The US retail giant would buy out their Indian partner from their 50-50 joint venture for an undisclosed sum.
Contained in their joint statement, the companies said they have reached a mutual agreement to independently own separate business entities in India and to discontinue the franchise agreement they had entered into for the Indian retail business. This final agreement though is subject to the finalization of definitive agreements and the receipt of the required regulatory approvals.
The statement read, "Upon receipt of the required clearances, Wal-Mart would acquire Bharti's stake in Bharti Walmart Pvt Ltd, a joint venture between Bharti and Wal-Mart, giving Wal-Mart 100 percent ownership of the Best Price Modern Wholesale cash and carry business."
Accordingly, Bharti Enterprises Vice-Chairman and MD Rajan Bharti Mittal said, "Bharti is committed to building a world-class retail venture and will continue to invest in Bharti Retail across all formats. We believe that with our current footprint of 212 stores, we have a strong platform to significantly grow the business and delight customers."
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