Amazon tries to thwart sale of retail assets of future Indian group to Rival Reliance
Amazon.com (NASDAQ: AMZN) is trying to prevent rival Reliance Industries from acquiring the retail assets of Indian group Future for $ 3.4 billion.
Reuters reports that the e-commerce giant is asking an Indian court to intervene in the case after the sale obtains approval from market regulators and the country’s stock exchanges.
The future of global retail growth
Amazon and Reliance Industries are competing to establish positions in Future Retail, India’s second largest retailer.
The former has invested over $ 100 million in Future Coupons, a gift card, loyalty card and reward card for businesses owned by Future Retail. Reliance and Future agreed to sell the assets in August last year.
To block the deal, Amazon is asking the court to uphold a Singapore arbitration ruling that the sale of assets should be suspended. The e-commerce site maintains that both parties had agreed to use arbitrators in the event of a dispute, and claims that Future violated pre-existing terms it had by making the sale with Reliance.
Because India is seen as the key to global growth initiatives, Amazon was also in negotiations with Reliance to acquire a 40% stake in Reliance Retail for $ 20 billion. Reliance Retail operates supermarkets, various retail chains, and an online grocery store called JioMart, which Alphabet and Facebook have invested in.
Last week, Reliance agreed to integrate JioMart into Facebook’s WhatsApp messaging app to allow users to shop online without ever having to exit the app, which is said to be the most popular messaging app in France. India.
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