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Why is Amazon against Future Group and Reliance deal?
Amazon had its sights on ultimately owning some of Future’s retail assets itself. It has argued a 2019 deal it had with a Future unit contained clauses prohibiting the Indian group from selling its retail assets to anyone on a “restricted persons” list that included Reliance.
What is the problem between Amazon and Future Group?
The High Court had directed the Future group firms and promoters to file their affidavits giving details of their assets for violating an Emergency Arbitrator award. On August 6, the Supreme Court ruled in favour of Amazon against the proposed ₹24,713-crore merger deal between Future Retail Limited and Reliance Retail.
What is the issue between Amazon and Reliance?
Amazon and FRL have been embroiled in a bitter legal fight over the deal and the US-based firm has sought in the apex court that the EA award was valid and enforceable. The Supreme Court has upheld e-commerce giant Amazon’s plea against the Rs 24,731-crore merger of Future Retail Ltd (FRL) with Reliance Retail.
Is Future Retail taken over by Reliance?
The legal battle between Amazon and Future Retail dates back to August 2020, after Mukesh Ambani-led Reliance Retail agreed to buy Future Group’s retail, wholesale and warehousing assets.
Why is Amazon blocking future deal?
Amazon has asked India’s antitrust regulator to revoke its approval for Future Retail’s $3.4 billion sale of retail assets to Reliance, saying it was “illegally obtained”, violating an order suspending the deal, a letter seen by Reuters shows.
What happened to RIL and future deal?
Reliance Retail Ventures (RRVL), the retail arm of Reliance Industries, has for the second time extended the timeline for completing its Rs 24,713-crore deal with the Future group, to March 31, 2022, as it awaits regulatory and judicial clearances.
What is the Future Group-Reliance deal with Amazon?
After Future’s agreement with Reliance, Amazon said the deal was a violation of a non-compete clause and a right-of-first-refusal pact it had signed with the Future Group. The deal also required Future Group to inform Amazon before entering into any sale agreement with third parties.
What is the Future Group case against Amazon?
Amazon, in early October, accused its partner Future Group of breaching terms of a mutual agreement by announcing an asset sale deal with Reliance, the conglomerate helmed by Asia’s richest man.
Is Amazon investing in future retail?
In August 2019, Amazon invested in a Future Group entity that gave it a roughly 4.8\% stake in Future Retail as of September 30 this year, according to stock exchange filings. The deal gave Amazon the right of first refusal to acquire more shares in Future Retail, according to one of the filings.
Why is Amazon trying to scuttle future sale?
Amazon says Future violated a partnership contract with the asset sale to its rival and wants to scuttle it, while the indebted Indian group says it would collapse if the transaction fails.