16.1 C
Delhi
Wednesday, December 1, 2021

Amazon told Future Group – deal with Reliance cancell, we will give new investor

The ongoing dispute between RIL and Amazon has taken a new turn. Now Amazon told Future Group that if it ends the deal with Reliance, the company will help it get investment from a strong financial partner or investor. Earlier, Amazon filed a legal case against the promoters of Future Group at the Singapore International Arbitration Center (SIAC). Its decision may come by next week.

Amazon’s concern

According to media reports, Amazon has asked Kishore Biyani’s Future Group to get investment from big institutional investors and new strategic partners to overcome the huge debt problem. Experts say that this deal between Amazon, RIL and Future Group has been worried. Because it can give a tough competition to the company in India.

Paytm, PhonePe, Google Pay, Amazon Pay will no longer be able to use exclusive QR codes

RIL and Amazon’s presence in Indian markets

While RIL is eyeing the online retail space in India, which Amazon and Flipkart are leading. At the same time, Amazon is working to strengthen its hold in the offline retail business due to its strong online presence in India. Its Amazon acquired Aditya Birla Group’s supermarket chain in 2018 along with private equity fund Samara Capital.

Amazon’s eye on Future Group’s business

According to reports, Amazon is eyeing local outlets of Future Bazaar’s Big Bazaar, FBB and others. Because through this, Amazon Local Merchandise Products can reach the buyers home in a day at a large level in a low price. Now in such a situation, if the deal between Future Group and RIL is completed, then the partnership between Amazon and Future Coupon will not make any sense.

In 2019, Amazon missed out on buying a large stake in Future Group due to FDI regulations in the retail business. So the company paid Rs 1,430 crore for a 49% stake in the group’s other company, FCPL, which did not allow Amazon to get a major stake in Future Retail.

Festive Sale: Up to 80% cheaper on Amazon, Myntra; clothes, shoes, ethnic wear

Legal notice against promoters of Future Group

Last month, Amazon sent a legal notice to promoters of Future Group. It said that the deal it had entered into with Reliance Industries Ltd (RIL) violated the rules of the non-compete contract. Despite this, according to reports, Amazon wants to help Future Group.

The dispute between Amazon and Future Group

In August this year, Future Group sold RIL to the retail, wholesale, logistics and warehouse businesses. On this, Amazon objected to the Singapore International Arbitration Center (SIAC) legal case against the promoters of Future Group. A hearing was held on 16 October.

According to sources, during the hearing, Amazon, Future Group and Reliance in this case V.K. King Sol was as arbitrator. Vk Raja is a former Attorney General of Singapore. It is believed that they can give a decision on 26th of next week.

Read: FII stake increased to 25.2% in Reliance Industries, bought 2.73 crore shares in three months

Latest news
- Advertisement -
Related news
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here