Big Bazaar Now Officially Belongs To Reliance As Rs 24,000 Cr Deal Gets Final Approval
Finally, Reliance has got market regulator SEBI’s approval for going ahead with the takeover over Future Group’s scheme of arrangement and sale of assets in a Rs 24,713-crore billion deal, further acquiring the rights for retail major Big Bazaar.
SEBI And BSE Approval
After five months of its announcement in August, now Securities and Exchange Board of India (SEBI) allowed the deal with the addition of some riders.
Additionally, the Bombay Stock Exchange (BSE) has also granted a “no adverse observation” on SEBI’s go-ahead on the proceedings.
Till now Reliance was battling it out with Amazon.
Amazon had also written several letters to regulatory agencies, requesting to suspend their review of the deal.
Further, it requested to not grant it a no-objection certification on the ground that its challenge to the agreement was before the Delhi High Court.
Prior to this, Delhi High Court was hearing arbitration proceedings against the Future Group filed by e-commerce major Amazon.
In this case, Amazon had challenged the deal on a “draft scheme of arrangement” that should be mentioned specifically by the Big Bazaar parent firm.
Moreover, the letters issued by BSE & NSE clearly mentioned that comments of SEBI on the “draft scheme of arrangement” (proposed transaction) are subject to the outcome of the ongoing arbitration and any other legal proceedings.
What Does Amazon Say?
At this event, an Amazon spokesperson said, “We will continue to pursue our legal remedies to enforce our rights.”.
According to the SEBI direction, Future Group shall ensure that the details of the complaints made by Amazon.com NV Investment Holdings LLC and submission of its group firm Future Retail.
Earlier, Amazon had agreed to purchase 49% of one of Future’s unlisted firms — Future Coupons Ltd during August 2019, with the right to buy into the flagship Future Retail after a period of three to 10 years.
Afterworld, it dragged Future Group to arbitration at the Singapore International Arbitration Centre (SIAC), with the argument that Future violated its contract with the US firm by entering into the deal with rival Reliance.
Later on, Amazon won the injunction barring Future Retail from taking any step to dispose of or encumber its assets or issuing any securities to secure any funding from a restricted party, In October last year.