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

Third-Quarter Sales Better -Than- Expected for LinkedIn, Thanks to New Businesse
“Overweight” Rating for Facebook from JPMorgan Chase & Co
Fall in Oil prices Leave the Small-cap Shale Companies in Trouble
Beginning of 2015, Starbucks will Start its Delivery Service in Selected Markets
Herb Strather, Detroit blight Buyer Makes a Wednesday Deadline
Baidu with its Growing Mobile Presence, Hit 27 Percent Profit Increase
Third Quarter Profits for Samsung Electronics Drop Sharply
Federal Reserve Ends Bond Buying Programme, Keeps Interest Rates Low
Reduced Growth in Major Overseas Economies Affect U.S. Durable Goods Order
Lowe’s to Introduce Robots in Store for Customer Service
Facebook Shares Fall as the Company Portrays Increased in Expenses in 2015
USPS Audit Questions the Consistency of Surveillance Conducted on Mail