Amazon opposed the deal and moved a Singapore arbitration court. At the same time, in this case, the arbitration court gave a decision in favor of Amazon and interim stay on the deal.
A relief news has come to Reliance Industries. Actually, the deal of Reliance Industries and Future Group has been approved by Competition Commission of India (CCI). With this, Reliance Industries will now be able to take over the business of Future Group. At the same time, the approval of CCI is a big blow to the American e-commerce company Amazon.
Actually, there was a deal between Mukesh Ambani's Reliance Industries and Kishore Biyani's Future Group. Under the deal, Reliance signed a deal of Rs 24,713 crore to acquire the retail, wholesale, warehousing and logistics business of Future Group. This deal has now been approved by CCI. On the other hand, this deal of Reliance Industries and Future Group is constantly being opposed by Amazon.
Amazon opposed the deal and moved a Singapore arbitration court. At the same time, in this case, the arbitration court gave a decision in favor of Amazon and interim stay on the deal. Apart from this, Amazon wrote a letter to market regulator SEBI, Stock Exchange and CCI and asked them to take action keeping in mind the decision of the arbitration court.
Competition from Amazon
Let us know that Reliance wants to expand the retail business in the country and hence this deal has been done. In the retail sector, Reliance Retail is getting a lot of competition from Jeff Bezos' e-commerce company Amazon. Apart from CCI, the deal requires approval from the market regulator Securities and Exchange Board of India (SEBI) and the National Company Law Tribunal (NCLT). Apart from this, no objection certificate from creditors and minority shareholders is also required.
At the same time, with the approval, Reliance Retail will get access to 1800 stores of Future Group spread across the country. This includes stores of Future Group's Big Bazaar, FBB, Easyday, Central Foodhall formats. Future Group has stores in 420 cities across the country.
What is the matter?
Explain that Amazon had issued a legal notice to Future Group and alleged that the company had violated the agreement with them by selling assets worth Rs 24,713 crore to Reliance Industries. After which Amazon filed a case in the Arbitration Court in Singapore regarding the case.