Amazon made official offer to buy 60 percent of Flipkart

Tinuku - Amazon.com Inc. has made an official offer to buy 60 percent of Flipkart that could potentially complicate Walmart Inc.'s efforts to acquire the majority of online retailers. A source on Wednesday said Amazon was trying to win the e-commerce market in India and the offer was a tactic to block Walmart in logistics and supply chain management to Flipkart.

Walmart will pay US$10 billion to US$12 billion to buy a majority stake in Flipkart as Amazon India's biggest competitor. However, the source says Amazon is indeed interested in buying Flipkart. Until now Walmart, Amazon and Flipkart declined to give official comment.

Amazon's offer could start a new battle with Walmart who has become a fierce retail contender in the United States. The offer stresses the importance of gaining a greater foothold in online sales in India where the market is worth $ 200 billion a year and the key to mastering South Asia.

Walmart and Amazon's desire to get a share in India came after the two retailers struggled to grow in China, which eventually lost confidence in China's e-commerce company Alibaba Group Holding Ltd.