Wal-Mart Pulls out Retail Joint Venture with India’s Bharti Enterprises

.

Wal-Mart Pulls out Retail Joint Venture with India’s Bharti Enterprises

Wal-Mart has reached an agreement to finish its joint venture with Indian multinational company named, Bharti Enterprises on Wednesday. This indicates that giant U. S. retail continued to struggle, and thereby putting rules on foreign investment in India.

Bharti's stake will be acquired by Arkansas-based Wal-Mart (WMT, Fortune 500) in the undertaking.

Both companies said that they will now strike out on their own and will carry on independent retail operations.

The joint venture incorporated about 20 wholesale stores. However, as Wal-Mart became the target of several legal investigations, development had slowed in recent months. It focused on potential Foreign Corrupt Practices Act (FCPA) violations. The CFO of the Bharti venture was suspended by Wal-Mart last year. In last June, CEO Raj Jain departed.

The CEO of Wal-Mart Asia, Scott Price, told CNN last week that the company remains faithful towards the Indian market, particularly with hundreds of millions of consumers moving into the middle class over the next 20 to 35 years.

Price said," But what it requires is the ability for us to invest in a manner that is simple, that we can comply with the law and we can make shareholder returns".

In spite of earlier plans to open eight wholesale or cash-and-carry stores in India in 2013, Wal-Mart has not opened a single for about a year.


Latest News

McDonald’s Turnaround Effort Stumbles as All-Day Breakfast Seems to Lose Popular
Apple Inc’s Revenue Drops for the Second Consecutive Quarer on iPhone Slump
Two killed in gunfire at nightclub in Fort Myers in Florida
Federal judge to consider Volkswagen’s $15 billion settlement
Demand for Treasury’s Auction Weak as Traders Expect an Interest Hike this Year
Solar Impulse 2 Completes Its Historic Journey Round the World and Lands in Abu
Telecom Giant Verizon Buys Yahoo and Plans to Merge it with AOL Unit
Wild fire continues to spread in Santa Clarita area
Debbie Wasserman Schultz steps down as head of DNC
Chinese Currency Faces Increasing Pressure
Crude Futures Remain Close to Two Month Low as Over Supply Concerns Intensify
Reportedly Verizon is Expected to Acquire Yahoo for $4.8 Billion