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new Delhi27 minutes ago
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In the retail sector, Reliance Retail is getting a strong competition from Jeff Bezos’ e-commerce company Amazon.
- Reliance Retail to get Future Group’s retail, wholesale and logistics and warehousing business
- Singapore’s arbitration court has put an interim stay on the deal on Amazon’s appeal
The Competition Commission of India (CCI) on Friday approved the Reliance Retail and Future Group deal. CCI said in a tweet that the commission has approved the purchase of Future Group’s retail, wholesale and logistics and warehousing business. Reliance Retail Ventures Ltd and Reliance Retail & Fashion Lifestyle Ltd have bought these businesses of Future Group.
Reliance Industries Limited (RIL) had announced the purchase of Kishore Biyani’s Future Group in August. The deal was done for Rs 24,713 crore. Reliance had signed the deal to expand the retail business in the country. In the retail sector, Reliance Retail is getting a strong competition from Jeff Bezos’ e-commerce company Amazon.
Reliance will get access to 1800 stores of Future Group
After getting approval from CCI, Reliance Retail will get access to 1800 stores spread across the country by Future Group. This includes stores of Future Group’s Big Bazaar, FBB, EGD, Central Foodhall formats. The Future Group stores are located in 420 cities in the country. Under this acquisition, Future Group will merge certain companies into Future Enterprises Limited.
Business will be transferred in this way
Future Group’s retail and wholesale business will be transferred to Reliance Retail and Fashion Lifestyle Limited. The logistics and warehousing business will be transferred to Reliance Retail Ventures Limited. Kishore Biyani, CEO of Future Group, says that it was decided to sell the business in the interest of all stakeholders such as lenders, shareholders, creditors, suppliers and employees.
Singapore arbitration court has imposed a ban
Amazon filed a case in Singapore’s arbitration court against the Future Group-Reliance retail deal. In this case, the arbitration court gave an interim stay on the deal while giving a ruling in favor of Amazon. Apart from this, Amazon wrote to the market regulator SEBI, Stock Exchange and CCI and asked them to take action keeping in mind the decision of the arbitration court.
Future Retail reaches Delhi High Court
Future Retail has moved the Delhi High Court against the Singapore Arbitration Court’s decision. Future Retail has stated in the Delhi High Court that Amazon is not a shareholder and has nothing to do with the deal. Future Retail maintains that Singapore’s arbitration court’s interim decision has no value.