Retail giant Walmart is reportedly about to part ways with Indian partner Bharti Group.
There is speculation that Walmart will not convert into equity the $100 million that it lent to Cedar Support Services, the holding company of Bharti Retail.
The US retailer invested the funds in 2010 with an option to convert it into 49 per cent stake on September 30, 2013. The investment became a subject of probe after Rajya Sabha MP said that the fund has violated the foreign direct investment rules and Reserve Bank of India’s guidelines.
Walmart and Bharti Retail are partners in a joint venture that operates cash and carry stores in India, however, Walmart is reportedly mulling exiting the wholesale business.
There are also reports that Walmart is now in talks with other companies for its front-end retail venture in India.