To keep corrupt practices at bay, Walmart is planning to bring expats to fill up roles such as chief financial officer, legal counsel and compliance officer at Flipkart. This will be done once the $16 billion acquisition of the home-grown giant is complete and will ensure that US anti-corruption laws are followed. The US Foreign Corrupt Practices Act prohibits companies listed in the US from partaking in corrupt practices in foreign countries. Filling these positions with expats is part of Walmart's global push to ensure compliance with these regulations.
As mentioned in a report in The Economic Times, the American retail giant is looking to shift some of its key executives from Gurugram to Bengaluru, Flipkart's home ground. It might even bring in talent from its Asda unit in UK that it had sold to rival, Sainsbury for $10 billion in April.
Earlier this month, Walmart also recently assured Indian tax authorities that it would pay up the taxes that were due on its Flipkart deal. Tax authorities had written to the company telling them that they could approach the department on any clarification they might need.
While Flipkart has responded to the authorities, Walmart has said that it will comply with all the requirements. The Walmart-Flipkart deal is expected to close later this year, with the companies awaiting clearance from the Competition Commission of India.
The Walmart-Flipkart deal that took place in May this year involved the world's biggest company by revenue buying around 77 per cent stake in India's online retail market leader for $16 billion, valuing the e-tailer close to $20 billion.Amazon, both Walmart and Flipkart's biggest rival is looking at tough competition ahead as both the giants have joined forces to battle it online as well as offline.