Amazon, Future Group locked in court battle

Posted By : Telegraf
4 Min Read

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The row between e-commerce giant Amazon and Indian brick-and-mortar retailer Future Group, which plans to sell a major chunk of its assets to Reliance Group, has turned into a court battle.

In the latest development, Future Retail has filed an appeal in the Delhi High Court against its earlier order blocking its 250-billion rupee (US$3.4 billion) deal with Reliance. The court had on Tuesday directed Future Retail to maintain the status quo in relation to its Reliance deal following objections raised by Amazon. The deal included the sale of Future Group’s supermarket chain Big Bazaar, premium food supply unit Foodhall and fashion and clothes supermart Brand Factory’s retail and wholesale units.

In a regulatory filing the Indian retailer said, “The company has filed an appeal before High Court of Delhi against the impugned order dated February 2.”

Amazon had acquired a 49% stake in Future Coupons in 2019 and by virtue of it obtained a small stake in Future Retail. This deal gave Amazon the first right of refusal during a stake sale. There is also a non-compete clause that prevents Future Group from approaching Amazon’s competitors.

After the Future Retail entered into a deal with Reliance Retail in August last year, Amazon had approached the Singapore International Arbitration Centre alleging that it breached their 2019 agreement. The Singapore court had on October 25 ordered a stay and told Future Group not to proceed with the sale and await the outcome of the arbitration process.

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