Reliance Retail Ventures operates supermarkets and consumer electronics chain stores.

The US-based e-commerce major had on Sunday won a temporary order against its Rs 24,713 deal with the Kishore Biyani-owned group company, Future Group as the two global giants Amazon and Reliance battle for a share of the retail pie in the country. An arbitration court in Singapore restrained Future Retail from selling assets worth Rs 24,713 crore to Mukesh Ambani’s Reliance Industries Limited. Both Future Retail and Reliance Group have, however, expressed their intention to “close without any delays.”

  1. Future Retail said it was examining the arbitration panel’s order and would take necessary steps in enforcement proceedings to close the deal without delay. The Kishore Biyani-owned retail chain said, “Actions taken by Future Retail Limited (FRL) / its board cannot be held back in arbitration proceedings initiated under an agreement to which FRL is not a party.”

  2. Reliance Retail said “it intends to enforce its rights and complete the transaction as per its agreement with the Future Group without any delay.” “The rights and obligations (under the deal) are fully enforceable under Indian Law,” Reliance Retail added.

  3. The Singapore-based single-judge arbitration court had restrained Future Retail from selling its retail business to Reliance Industries for Rs 24,713 crore. Passing an interim award in favour of Amazon, VK Rajah had asked the Future group to put the deal on hold and said that the deal cannot go through until it finally decides the matter, sources with direct knowledge of the development had said earlier.

  4. Amazon said in a statement, “We are grateful for the order which grants all the reliefs that were sought. We remain committed to an expeditious conclusion of the arbitration process.”

  5. Amazon last year bought a 49 per cent stake in one of Future’s unlisted firms, Future Coupons, with the right to buy into Future Retail for a period ranging from three years to 10 years. Future Coupons owns a 7.3 per cent stake in Future Retail.

  6. However, in August, Reliance Retail decided to buy retail, wholesale and some other businesses of Future Group. On August 29, 2020, the Future group announced the sale of its retail, wholesale and logistic businesses to Reliance Retail Ventures Limited, the retail arm of Reliance Industries.

  7. Two sources familiar with the matter said the temporary injunction was not automatically enforceable in India and that the order would have to be ratified by an Indian court.

  8. Reliance Industries – already the country’s biggest brick-and-mortar retailer – has plans for the online segment that would see it take on Amazon in what is a rising market.

  9. Reliance Industries’ deal to acquire rival Future Group’s retail business and its earlier launch of JioMart, in May, were aimed at rivalling Amazon’s local unit and Walmart’s Flipkart in the huge retail segment in the country.

  10. Reliance Retail Ventures operates retail business spanning supermarkets, consumer electronics chain stores, cash and carry wholesale business, fast-fashion outlets and online grocery store JioMart.

Source link


Please enter your comment!
Please enter your name here