NCLAT adjourns hearing over CCI’s Walmart-Flipkart deal approval to Nov 12
New Delhi: The NCLAT on Friday adjourned its hearing over the petition filed by traders' body CAIT against fair trade regulator CCI's approval of Walmart's USD 16 billion acquisition of Flipkart.
Now the matter has been listed for the next hearing on November 12 before a two-member bench of the National Company Law Appellate Tribunal (NCLAT).
Earlier on September 6, the NCLAT which is also an appellate authority over the Competition Commission of India (CCI), had asked WalMart International Holdings Inc to file a reply before it explaining way of doing business in India.
The CAIT, which has filed an appeal before the NCLAT challenging the go-ahead by the CCI on Walmart's acquisition of home-grown Flipkart, was also asked to file its understanding over the Walmart's business model in India.
In its reply filed before the appellate tribunal, CAIT had alleged that Walmart has been found "guilty of predatory behaviour" in countries like Germany, Mexico and South Africa and "may repeat such behaviour in India" through its acquisition of online major Flipkart. It has also submitted that the US retail major "may cause an appreciable adverse effect on competition" in the domestic market post combination as its "predatory tendencies" would be on a much larger scale .
Walmart International Holdings Inc, however, in a separate reply has said its business model and activities in India were different of Flipkart's. Moreover, on account of FDI restrictions, Walmart India can not engage in selling directly to consumers.
Even in business segments, where there is an overlap with Flipkart, Walmart said the "combined market share of Flipkart and Walmart in the market of B2B sales are less than five per cent and the incremental change in the market shares as a result of this transaction is less than 0.5 per cent".
Earlier, on August 18 Walmart had informed that it has completed deal with Flipkart and holds 77 per cent stake in the Indian e-commerce major. end-of