On Sunday, US retail giant Amazon secured a major relief against the proposed ₹24,713-crore combination of Reliance Retail Ventures Ltd and Future Group’s retail and wholesale business when a Singapore arbitration panel ruled that the two parties could not go ahead with the transaction for the time being. The Jeff Bezos-led company had claimed that Reliance-Future deal violated a non-compete clause it had with the Kishore Biyani Group. The two parties had then agreed to go for arbitration.
While Amazon has won an interim relief, both Reliance and Future Retail in separate statements said they intend to proceed with the deal.
Reliance Retail said it intends to enforce its rights and complete the transaction in terms of the scheme and agreement with Future group without any delay.
The company said that it entered into the transaction for acquisition of assets and business of Future Retail under proper legal advice and the rights and obligations are fully enforceable under Indian law.
Future Retail said that all agreements are governed by India law and provisions and the order would be tested as per Indian arbitration act. In any enforcement proceedings, Future Retail would take appropriate steps to ensure that the proposed transaction will proceed unhindered without any delay, it added.
Last year, Amazon agreed to buy 49% of one of Future's unlisted firms last year with the right to buy into flagship Future Retail after a period of three years to 10 years.