Reliance Industries is trying to acquire the retail assets of India’s Future Group for $3.4 billion. But Amazon.com (NASDAQ:AMZN) is making sure the deal does not see the light of the day.
Reports claim that the e-commerce giant has asked the Indian Court to intervene in the matter. The sale has already got approval from the country’s market regulators and stock exchanges. But the rival Amazon does not want the deal to happen as they are also competing to establish a potion in Future Retail, India’s second-largest retailer.
To make sure the deal does not happen Amazon has asked the court to uphold a Singapore arbitration ruling which will put the asset sale on hold. According to Amazon, Future has violated pre-existing clauses it had by entering into the sale with Reliance.
Reliance had invested more than $100 million into Future Coupons, a gift card, loyalty card, and rewards card business for corporations owned by Future Retail. Both the companies agreed on selling the asset in August, 2020.
Amazon is also negotiating with Reliance, wanting to acquire a 40% stake in Reliance Retail for $20 billion as India is considered a key to global growth initiatives. Other deals are also in line for Reliance.
Reliance has recently agreed to embed JioMart into Facebook’s WhatsApp messaging app so that the users can shop online using the most popular messaging app in India.
