Amazon sends legal notice to Future Group for selling stake to Reliance Industries
VietReader 8-10-2020, 10:20
‚ÄuGlobal retail giant Amazon has sent a legal notice to promoters of Future Group for allegedly breaching a non-compete contract over the latter's deal with Reliance Industries Limited (RIL),‚Äu
ET Now
reported.

Amazon confirmed the legal notice, according to
TechCrunch .


In August, RIL's retail arm Reliance Retail acquired Indian conglomerate Future Group's own retail and wholesale business, as well as its logistics and warehousing arm for US$3.4 billion.


Amazon, however, said the deal ‚Äubreaches the terms of its contract by selling a significant portion of the business to Ambani's Reliance Retail.‚Äu


Prior to the deal, Amazon acquired a 49% stake in Future Coupons, a promoter group entity of Future Group's retail business. With the deal, the US ecommerce giant holds a 358% stake in the retail arm and the right of first refusal to buy more stakes in the unit, the report said.


This comes after Amazon reportedly expressed interest in a deal to invest
US$20 billion
in Reliance Retail for a 40% stake. The retail arm has raised more than
US$5 billion
from leading global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG, and ADIA recently. Its ecommerce platform JioMart aims to take on Amazon and Walmart's Flipkart in the country.

TAG: