Reliance Will Be Allowed To Buy Big Bazaar For Rs 24,000 Crore? Decision In Next 14 Days
The war to dominate India’s retail sector has been raging for a long time now. It has got many players including Amazon, Reliance Retail and Future Retail. Last year, Kishor Biyani founded Future Group decided to sale its retail and wholesale business, and the logistics and warehousing business to Reliance Retail. But this did not go down with Amazon who is an investor in Future Coupon Pvt Ltd., Future Retail Ltd’s (FRL) promoter group entity.
Till now both the groups have been fighting over it in various courts. It looks like, the issue might be finally coming to an end.
CCI to revoke its approval of Amazon- Future coupon deal
Recently, the Delhi High Court asked the Competition Commission of India (CII) to rule on revoking its approval to the Amazon-Future Coupons deal within two weeks. This information was released by the Confederation of All India Traders (CAIT) in a statement. CAIT had filed public interest litigation against CCI asking it to not delay the ruling.
Future Retail has informed that it has received a communication from promoter entity Future Coupons informing that CCI would meet Amazon and Future Coupons Pvt Ltd (FCPL) on January 4 in connection with the approval given by the fair trade watchdog to the e-commerce major’s investment in FCPL.
Incidentally, Independent directors of Future Retail Ltd have approached the CCI to seek revocation of the nod given to the US giant’s 2019 investments into FCPL, Future Retail Ltd’s (FRL) promoter group entity.
The internal directors accused Amazon of submitting “completely opposite information” which was “contradictory” to Amazon’s own internal communications.
The feud involves Rs. 24,713 crore Reliance Retail deal
Amazon is contesting the Rs 24,713 crore deal announced last year by Future Group for sale of the retail and wholesale business, and the logistics and warehousing business to Reliance Retail Ventures Ltd, a subsidiary of Reliance Industries Ltd.
Amazon is challenging the deal on the basis of its shares in FCPL and had approached Singapore International Arbitration Centre (SIAC). They have also approached Indian courts in this matter.
In October last year, the EA (the emergency arbitrator) had favored Amazon and had barred FRL from taking any step to dispose of or encumber its assets or issuing any securities to secure any funding from a restricted party. This decision was also upheld by SIAC last month stating that FRL is a party to the ongoing