Amazon.com Inc. Relieved in its dispute Future group imposes temporary ban on future after appearing in court $ 3.4 billion sale deal with Indian billionaire Mukesh Ambani Reliance Industries Ltd.
An arbitration court in Singapore barred Future Retail Ltd and its founders from proceeding with the sale of assets, according to people with knowledge of the case, who described the proceedings as not private. The decision was made at Amazon’s request for an interim order before the Chief Tribunal’s hearing began.
In an emailed statement late last night in Mumbai, Amazon said it had received all the reliefs without providing any details.
“We welcome the award of emergency arbitrator,” said Amazon. “We are committed to a speedy conclusion of the arbitration process.”
Future Group representatives declined to comment immediately when business hours arrived in India.
The ruling is a bit of relief for the US e-commerce giant as it seeks to block India’s largest retail deal that it could offer to Ambrio, Asia The richest man, unique dominance in the race for India’s estimated $ 1 trillion retail market. Ambani’s Reliance is already India’s largest brick-and-mortar retailer and has ambitious plans for the online segment, where it will take on Amazon.
Amazon drew the lines of battle earlier this month when it accused its partner, Future Group, of breaching the contract by agreeing to buy it by Reliance. The deal was a bailout for Future Group, which may once again face a severe cash crisis amid intense competition and an epidemic-induced lockdown.
A spokesperson for Seattle-based e-tailer told Bloomberg on October 8 that it had taken steps to enforce its contractual rights, without giving more details. The deal between Reliance and Future, announced in late August, is awaiting regulatory approval, which is not necessarily delayed by a Singapore court order.
Amazon says Indian partner after Broke Pact Ambani Sale deal
Amazon agreed to buy 49% of Future’s unlisted firms last year, with the right to buy in flagship Future Retail after a period of three to 10 years. But about two months ago, rival Reliance announced that it would buy the indebted Future Group’s retail, wholesale, logistics and warehousing units, doubling its footprint.
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In May, Amazon was considering increasing its stake in Future’s retail unit to 49%, according to people familiar with the matter at the time. But this transaction did not materialize in time for the future, forcing it to strike a deal with Ambani’s refining-to-retail group.
Stopping Reliance’s growing stronghold on India’s retail sector is important for Amazon if it only wants to dominate the consumer market with billions of people still open to foreign firms.