The Indian Watchdog has finally confirmed on Friday that it has approved the deal between the country’s 2 biggest retailers who are the biggest retail store giants. The deal between Reliance and the Future Group has been regarded as one of the biggest deals which are worth around 3.4 billion USD. This is quite a big deal that has brought the attention of big retailers in India which includes Jeff Besos owned Amazon as it has invested nearly 6 billion-plus dollars in Future Group. Amazon has a new headache now. The deal between the two major companies will surely affect Amazon and this will be quite interesting to see how Amazon gets to cope up with the situation. The Indian subcontinent is the second-most populous country in the world and of course, one of the most rapidly developing nations in the world.
More About The Deal Between Reliance And The Future Group :
The Indian Competition Commission (CCI), the Indian antitrust authority, has now approved the acquisition of the warehouses, the materials, wholesales, logistics, and the retail business of India’s second-largest retails chain, the Future Group by the Mukesh Ambani-led Reliance group. This is quite the biggest and most successful deal that the richest man in Asia has been able to make in recent history. However, we are yet to know how the American mega-giant company, Amazon reacts to the deal as it affects the company directly.
As far as the deal the concerned, the agreement is done at a whopping 3.4 billion USD. But, complaints have been raised by Amazon, who has bought stakes in the Future Group. This means that the sale cannot happen until Amazon is fully satisfied. This is because Amazon has its share in the company and if it is bought by Reliance, means that the shares get transferred. Hence, Amazon says to satisfy the contract, the Future Group has made a breach in the contract. This is how the series of events have transpired thus far.
But, the latest reports said that after taking its time, the CCI has finally approved the sale and that there has been no breach of contract that the major retailers have made to Amazon. This means that now the sale of the Future Group will happen and Reliance will occupy the country’s second-largest retailer which is quite big news. The case is still going on in a Delhi Court where Amazon is asking the SEBI and other authorities to review the temporary ban of the sale of the Future Group that was made by a court in Singapore. So, let’s see how events pan out.