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RIL, Future group stocks slip as SC rules in favour of Amazon

Amazon’s key objective is to prevent Reliance Industries from gaining the upper hand in India’s retail market by acquiring the assets of Future Group, which owns more than 1,500 Big Bazaar and fbb stores. (Photo: Reuters)Premium
Amazon’s key objective is to prevent Reliance Industries from gaining the upper hand in India’s retail market by acquiring the assets of Future Group, which owns more than 1,500 Big Bazaar and fbb stores. (Photo: Reuters)

  • Amazon had agreed to buy a 49% stake in Future Coupons, part of Future Group, in August 2019 on the condition that Future Group does not forge any alliance with Reliance Industries and 29 other entities without obtaining prior consent from the US e-commerce giant

MUMBAI: Shares of Reliance Industries Ltd and Future group fell on Friday after the Supreme Court ruled in favour of Amazon.Inc by holding that Singapore's Emergency Arbitrator award, restraining the 24,731 crore merger deal of Future Retail Ltd (FRL) with Reliance Retail, was valid and enforceable under Indian laws.

The Reliance Industries stock fell 1.7% to Rs2,098.75 apiece. Future Enterprises, Future Consumer, Future Lifestyle Fashions, Future Retail, Future Supply Chain - were all down 10% each.

In October 2020, the Emergency Arbitrator, constituted under the Singapore International Arbitration Centre Rules, had passed an interim award in favour of Amazon. The Emergency Arbitrator had directed Future Retail Ltd. to put on hold its transaction with Reliance Retail Ltd. on grounds that it violated Amazon’s contractual rights borne out of an agreement to invest Rs1,431 crore in Future Coupons Pvt.

In March, a single-judge bench of the Delhi high court had held this emergency arbitrator’s order to be enforceable. Future Retail appealed against the order at a division bench of the same court, which stayed it.

Amazon had agreed to buy a 49% stake in Future Coupons, part of Future Group, in August 2019 on the condition that Future Group does not forge any alliance with Reliance Industries and 29 other entities without obtaining prior consent from the US e-commerce giant

Amazon had also approached the Supreme Court against Future Group's retail assets sale to Reliance Industries.


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