Indian stock exchanges clear Future-Reliance deal in setback for Amazon

By Aditya Kalra NEW DELHI (Reuters) - Indian stock exchanges on Wednesday gave the go ahead for Future Group's $3.4 billion deal to sell its retail assets, taking it a step closer toward closing a deal that has soured its ties with its business partner Amazon.com Inc. Future and Amazon are locked in legal tussles over the Indian group's August deal with Reliance Industries

Reuters January 21, 2021 02:05:36 IST
Indian stock exchanges clear Future-Reliance deal in setback for Amazon

Indian stock exchanges clear FutureReliance deal in setback for Amazon

By Aditya Kalra

NEW DELHI (Reuters) - Indian stock exchanges on Wednesday gave the go ahead for Future Group's $3.4 billion deal to sell its retail assets, taking it a step closer toward closing a deal that has soured its ties with its business partner Amazon.com Inc.

Future and Amazon are locked in legal tussles over the Indian group's August deal with Reliance Industries. The U.S. e-commerce giant alleges the deal breached some of its pre-existing contracts with Future.

In late night notifications, Indian exchanges said they had no objection or adverse observation on the deal, saying they had reached the decision after communicating with India's markets regulator, the Securities and Exchange Board of India (SEBI).

SEBI has advised that Future should share various details of company's ongoing litigation with Amazon when it approaches India's National Company Law Tribunal, which also needs to sign off on the deal, the Bombay Stock Exchange notification said.

SEBI has separately not made its observations public.

Reliance and Future did not immediately respond to a request for comment.

The notifications will be a setback for Amazon, which has in recent weeks repeatedly written letters to SEBI and stock exchanges to suspend the deal's review.

Amazon has also dragged Future before a Singapore arbitrator, which passed an interim order in October saying the Reliance deal should be halted. Future says that order is not binding on it.

Following the nod from the exchanges, Amazon in a statement said it would continue to pursue legal remedies to enforce its rights, noting that the approvals were subject to the outcome of the ongoing arbitration process and other lawsuits.

The outcome of the dispute embroiling Future, Reliance and Amazon is seen shaping India's retail landscape, especially in deciding who will emerge as a leader of a groceries market expected to be worth around $740 billion a year by 2024.

(Reporting by Aditya Kalra in New Delhi; Editing by Euan Rocha and Steve Orlofsky)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.