Ending speculation over the future of their partnership, Bharti Enterprises and Wal-Mart Stores Inc. said today that they are going their separate ways for operations in the Indian retail sector. Subsequently, the US retail major will buy out the Indian partner from their 50:50 wholesale cash and carry joint
venture, Bharti Walmart, for an undisclosed sum.
In a joint statement, the companies said they have reached an agreement to independently own and operate separate business formats in India and discontinue their franchise agreement in the retail business. As part of the proposed transactions, Bharti will acquire the 100 million US dollars worth Compulsory Convertible Debentures held by Walmart in Cedar Support Services, a company owned by Bharti. Bharti Retail will continue to operate 'easyday' retail stores.