24 January 2022, Mumbai:
Amazon has offered financial assistance to Future Retail to block its pending deal with Reliance Retail. The e-commerce company has also prohibited Future Retail from transferring, disposing, alienating or encumbering its retail assets.
As per this clause, Future Retail has been banned from selling any of its small format stores without Amazon’s consent. Sale of small-format stores is likely to bring in revenues worth Rs 3,494.5 crore for Future Retail.
The US-based etailer had earlier lined up Samara Capital to fund Future Retail and even signed a term sheet with the Indian retailer before Reliance Retail stepped into the fray. Amazon swiftly moved the Singapore International Arbitration Centre (SIAC) in October 2020 against Future Group’s plans to sell its assets to Reliance Retail for Rs 25,000 crore and received an injunction against the deal from an emergency arbitrator.
However, the Delhi High Court earlier this month stayed arbitration proceedings between the two companies after the Competition Commission of India (CCI) suspended its approval of Amazon-Future Coupons deal late last month. Amazon has challenged the ruling but the arbitration has been put on hold for now.