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Indian stock exchanges approve $3.4B Reliance and Future deal in setback for Amazon

Indian stock exchanges approved the $3.4 billion deal between retail giants Reliance Retail and Future Group on late Wednesday in yet another setback for Amazon, which has invested over $6.5 billion in the worlds second largest internet market and sought to block the aforementioned deal.
The Bombay Stock Exchange said in a notification that it had spoken with Indias markets regulator, the Securities and Exchange Board of India (SEBI), and had no objection or adverse observation on the deal.
Wednesdays notification is the latest setback for Amazon, which had written to SEBI and Indian antitrust watchdog to block the multi-billion deal between Future Group and Reliance Retail, the two largest retail chains in India. Last year, Indias antitrust group gave a go ahead to the deal to the Indian firms.
We hereby advise that we have no adverse observations with limited reference to those matters having a bearing on listing/de-listing/continuous listing requirements within the provisions of Listing Agreement, so as to enable the company to file the scheme with Honble NCLT [National Company Law Tribunal],” the notification read. SEBI has advised Future to share various aspects of its ongoing litigation with Amazon to NCLT, whose approval for the deal is pending.
Amazon bought 49% stake in one of Futures unlisted firms in 2019 in a deal that was valued at over $100 million. As part of the deal, Future could not have sold assets to rivals, Amazon has said in court filings.
Things changed last year after the coronavirus pandemic starved the Indian firm of cash, Future Group chief executive and founder Kishore Biyani said at a recent virtual conference. In August, Future Group said that it had reached an agreement with Ambanis Reliance Industries, which runs Indias largest retail chain, to sell its retail, wholesale, logistics and warehousing businesses for $3.4 billion.
Amazon later protested the deal by reaching an arbitrator in Singapore and asked the court to block the deal between the Indian retail giants. Amazon secured emergency relief from the arbitration court in Singapore in late October that temporarily halted Future Group from going ahead with the sale.
The two estranged partners also fought at the Delhi High Court last year, which in a rare glimmer of hope for the American giant rejected Futures plea for an ad-interim injunction to restrain Amazon from writing to regulators and other authorities to raise concerns over and halt the deal between the two Indian giants.
An Amazon spokesperson told TechCrunch that the firm will continue to pursue legal remedies. “The letters issued by BSE & NSE clearly state that the comments of SEBI on the ‘draft scheme of arrangement’ (proposed transaction) are subject to the outcome of the ongoing Arbitration and any other legal proceedings. We will continue to pursue our legal remedies to enforce our rights,” the spokesperson said.
At stake is Indias retail market that is estimated to balloon to $1.3 trillion by 2025, up from $700 billion in 2019, according to consultancy firm BCG and local trade group Retailers Association India. Online shopping accounts for about 3% of all retail in India.read more

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