Setback for Amazon; Delhi HC lifts stay on Reliance Retail-Future Group deal
After scoring a minor win at the Delhi HC last week, Amazon will now have to deal with a major hurdle as a two-judge bench of the same court has stayed the status quo on Future Group’s deal with Reliance Retail.
While the matter is set to come up in the court again later this month, the court noted that authorities like markets regulator SEBI and the CCI could not be restrained from “proceeding in accordance with law”. In court recently, the Future Group argued that Amazon’s indirect stake in Future Retail through Future Coupons is not adequate enough for the company to procure Future Retail, which is why Amazon’s opposition holds no water.
The $3.4 bn Reliance Retail-Future Group deal has been in the balance ever since the US-based tech giant raised a petition in the Singapore International Arbitration Centre (SIAC) last year in October. Amazon owns 49% stake in the promoter-entity of Future Retail called Future Coupons through which it also acquired 3.58% stake in Future Retail.