According to reports, the deal between Amazon and Future Retail also restricted the Indian firm from entering into a deal with certain firms, regarding which the legal notice has been sent.
Amazon has sent a legal notice to the Future Group, India’s second-largest retail chain, over breach of the terms of its contract by selling a significant portion of the business to Ambani’s Reliance Retail.
It was selling its retail and wholesale business, as well as its logistics and warehousing business to Reliance retail, the Future group had announced in late August. The deal worth $3.4 billion was locked between the Future Group and Reliance.
Amazon and Future group also had a deal before Reliance came in the picture.
Amazon, last year, had acquired a 49% stake in Future Coupons, a group entity owned by Future Group’s retail business. The business deal gave Amazon a 3.58% stake in Future Retail, and the right of first refusal to purchase more stake in Future Retail both directly as well as via entities, Future Group had said in a filing at back then.
According to reports, the deal between Amazon and Future Retail also restricted the Indian firm from entering into a deal with certain firms, regarding which the legal notice has been sent.
Though Amazon confirmed that it has sent the legal notice, did not elaborate as the matter is “sub judice.”
As an independent media platform, we do not take advertisements from governments and corporate houses. It is you, our readers, who have supported us on our journey to do honest and unbiased journalism. Please contribute, so that we can continue to do the same in future.
