Amazon sends legal notice to Future Group in India regarding its deal with Ambani’s Reliance Retail
Amazon sends legal notice
Amazon has sent a legal notice to Future Group, India’s second-largest retail chain, for violating the Terms and Conditions by selling most of its business to Ambani’s Reliance Retail. Future Group announced in late August that it would sell its retail and wholesale business, as well as its logistics and warehousing business, to Reliance Retail for $ 3.4 billion. But before Reliance Retail was released, Future Group and Amazon also signed.
Last year, Amazon acquired a 49% stake in Future Coupons, a collection owned by Future Group’s retail business. The transaction gave Amazon the right to acquire a 3.58% stake in Future Retail and first refuse to purchase Future Retail shares directly or through an entity, FutureGroup said in a file at the time. I will. According to ETNow, which first reported the legal notice, the transaction between Amazon and Future Retail also restricts Indian companies from doing business with certain companies.
Amazon vs Reliance Retail
Early in its journey as a seller of stone-washed fabrics in the 1980s, the Future Group has served millions of customers with more than 1,500 stores in more than 400 cities as of earlier this year.
The legal notices baffle a lot in India as Amazon prepares to take in billions of dollars in India’s largest retail chain, Reliance Retail, according to earlier reports from ET Now and Bloomberg. I allow you.
Ecommerce accounts for only 3-7% of total retail sales in India, and Reliance Retail has launched its own e-commerce business to battle Amazon and foldable carts. The future of e-commerce companies in India. Amazon, which started its journey in India seven years ago, has invested more than $ 6.5 billion in local businesses in India. And Amazon confirmed that it had submitted a legal notice, but did not go into detail because the problem was a “secondary decision.” Reliance Retail and Future Group did not comment. As of midnight Wednesday (local time), Future Group has not disclosed any notice to the exchange.
Founded in 2006, Reliance Retail serves more than 3.5 million customers each week through approximately 12,000 physical stores in more than 6,500 cities and towns across the country (as of the beginning of the year). The retail chain, run by India’s wealthiest man Mukesh Ambani, has raised about $ 5.14 billion in the past four weeks by selling about 8.5% of its stake in Silver Lake, Singapore GIC, General Atlantic, and others. .. Ambani’s other venture, Jio Platforms, has raised more than $ 20 billion this year from more than 12 prominent investors, including Google and Facebook.