With great volume of merger and acquisition, partnerships are happening everyday in the Indian retail market, the e-commerce giant Amazon who was in talks to invest in the Future group ended up buying Future Coupons is now ready to replace the Reliance in RRVL- Future Deal. The Amazon Inc is reportedly willing to help its debt-laden partner Future Group if it calls off the Rs 24,700 crore deal with Reliance Retail Ventures Ltd (RRVL). Thereby helping Future group in bringing in a strong, stable investor.
The reason behind the sale of Future Group, Khiyani opens up
49% of the Future Coupons stake were owned by the Amazon Inc. Kishore Biyani-owned Future Group during its debt crisis the Amazon Inc helped by investing in future Coupons. According to the deal with Amazon and Future group, future coupons Amazon has a time span of three years to invest in Future Group but Khiyani has completed the deal with Reliance prior to the time period. For which, Amazon pulled the future Group to the Singapore Arbitration Centre. The arbitration is expected on or before October 26 and has a close relation to the RRVL deal, it may determine the status of the deal waiting for the regulatory approval.
FIIs increase Stake in Reliance, Stock Up
Amazon is strategically come forward to help the Future group as the former thinks RRVL-Future deal will increase its quality of the competition in the market. The Amazon which owns 7.3% stake in Future Retail was not given the Right of First Refusal (RoFR) to the RRVL-Future Group deal.
Reliance Retail receives Rs. 5,550 crores, this global investment firm buys stake