Amazon fights for its ‘rights’ in the Future Retail-Reliance deal – sends legal notice to the Kishore Biyani Group
Amazonhas said that it was denied the Rights of First Refusal for the deal with Future Group.
- In August, the Mukesh Ambani-led Reliance had acquired Future Group’s assets by way of a ‘slump sale’.
- Amazon in 2019 had picked up a 49% stake in
Kishore Biyani’s Future Group’s – Future Coupons for ₹1,431 crore.
In August, the Mukesh Ambani-led Reliance had acquired Future Group’s assets by way of a ‘slump sale’. However, even then speculations were rife about what happens to Amazon’s previous partnership with Future Coupons.
Amazon in 2019 had picked up a 49% stake in Kishore Biyani’s Future Group’s – Future Coupons for ₹1,431 crore. As part of the agreement, Amazon had been granted a call option. This option allows Amazon to acquire all or part of the promoters' shareholding in
Advertisement“We have initiated steps to enforce our contractual rights. As the matter is sub-judice, we can’t provide details,” Amazon said in a statement.
With the matter now having taken a legal turn, Amazon could pose a major hurdle in the completion of the Reliance and Future Group deal. Earlier, it was reported by several publications that Amazon was in talks with Reliance for a 40% stake in Ambani’s retail venture.
Even though the deal didn’t go ahead, Amazon has been strengthening its foothold in India. Amazon had recently received ₹1,125 crore from its Singapore-registered parent entity.
Additionally, Amazon and Samara Capital are investing ₹275 crore ($37.5 million) into MORE – the retail chain the duo had acquired from Kumar Mangalam Birla’s Aditya Birla Group, according to filings sourced by financial data platform paper.vc.
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