Tag: AMAZON vs FUTURE

Big Breaking: Reliance Cancels Deal With Future Group

Reliance Industries on Saturday said its Rs 24,713 crore deal with Future Group cannot go ahead as secured creditors of Future Group have voted against the deal. The deal has now collapsed due to non-receipt of lenders’ approval. In this regard, this information has been shared by Reliance in a regulatory filing.

Not Agreeing to Reliance’s Plan:

On Friday, the secured creditors of Future Retail Limited voted against the deal, after which Reliance on Saturday backed out of the deal. Creditors, which had given loans to Future Group, rejected the Rs 24,730 crore deal between Reliance Industries and Future. In this meeting, a public sector bank official had said that all the creditors had voted against the arrangement scheme put up by Reliance.

Amazon is Fighting a Legal Battle

Earlier in 2019, Amazon had bought 49 per cent stake in Future Coupons (the holding company of Future Group) for Rs 1,500 crore. Under this deal, Amazon also got the right to buy a stake in Future Retail within 3 to 10 years, but after the Future Group deal with Reliance Retail, the deal was objected to by Amazon, since then long the legal battle continues.

Battle of Badshahat: Legal Battle Going On For More Than A Year Between Amazon, Reliance And Future Group

The ‘Holi Milan’ between Reliance Group, Future Group and Amazon has now turned into ‘Mahabharat’. At the center of this Mahabharata is nothing but the Indian retail market, whose battle to become the king is going on between Reliance and Amazon. In this, Future Group has also been suffering for more than a year.

In fact, to establish its dominance in the domestic retail market, Reliance had signed a deal of Rs 24,713 crore with Future Group on August 29, 2020. Upon completion of the deal, Reliance would have acquired the ownership of Big Bazaar as well as other retail, warehousing, logistics and wholesale businesses of the Future Group. That’s when Amazon put the deal on hold and has been fighting a legal battle with the Future Group for more than a year. Recently there were reports that Amazon and Future Group have agreed to settle the dispute out of court. The Supreme Court gave 15 days for this, but the matter could not be resolved. The battle for the kingdom continues.

Amazon Vs Future: No Solution Came Out Of Mutual Talks Outside Court, Matter Will Be Heard in Supreme Court

Amazon told the Supreme Court on Tuesday that it and Future Group had held extensive talks to reach a settlement, but no progress had been made on arbitration on the assets of Future Retail Ltd (FRL).

Supreme Court will hear on March 16

Along with this, it was argued on behalf of Amazon that despite the apex court’s order, Mukesh Ambani-led Reliance has taken over the FRL store. In this case, FRL says that not a single store has been surrendered yet. The Future Group said that Reliance came and removed the boards overnight as permitted by law. After hearing both of them, now the Supreme Court will hear Amazon’s petition seeking protection from FRL store acquisition on March 16.