Bezos wins the first point as Supreme Court rules in favour of Amazon, and puts on hold the $4.3 billion deal.
India's apex court ruled in favour of American e-commerce giant, Amazon, in the $3.4 billion deal between Kishore Biyani's Future Retail and Mukesh Ambani's Reliance Retail. This might have a positive impact on the country's retail industry, but nothing is certain - claim retail industry veterans.
"We hope that some positive news comes through to save thousands of jobs, various suppliers' payments and repayment of money that the banks lent to one of the largest retail companies in the country. As an industry, we would seek business continuity and a stress-free Retailing environment in India," Kumar Rajagopalan, the Chief Executive Officer of the Retailers Association of India, told바카라 웹사이트바카라 Business.바카라 웹사이트
바카라 웹사이트The halt to the바카라 웹사이트deal comes as a surprise to many, as the바카라 웹사이트Supreme Court바카라 웹사이트decided to take note of the precedence바카라 웹사이트and by upholding바카라 웹사이트the Singapore International Arbitration Centre (SIAC)라이브 바카라 award, which comes as a blow to Ambani's ambition of national retail dominance.
바카라 웹사이트The sales of a slice of its warehousing and allied businesses to Reliance for Rs 24,713 was a ‘development’ being looked forward to by banks and vendors invested in Future Retail. But, here is the twist:바카라 웹사이트Amazon had invested in the Future Coupon business in바카라 웹사이트August 2019바카라 웹사이트with the option of buying into the flagship Future Retail바카라 웹사이트over바카라 웹사이트a period of three to 10 years.
바카라 웹사이트Amazon's intervention does not come as a surprise as the ecommerce entity continues to build a larger e-retail presence in India.
While upcoming developments in the Amazon-Future-Reliance legal바카라 웹사이트battle바카라 웹사이트is yet to fully unfold on ground, the retailers feel that the impact will be felt by the industry as a whole.바카라 웹사이트After the court's ruling바카라 웹사이트Future바카라 웹사이트Retail's바카라 웹사이트stock바카라 웹사이트price바카라 웹사이트fell바카라 웹사이트by 9.94%바카라 웹사이트to바카라 웹사이트Rs 52.55 per share.
Future of Future Retail:
In바카라 웹사이트August 2020, Future Retail expressed its intention to “sell by way of a slump sale the retail and wholesale business” of its supermarket chain, food supply unit, clothes supermarket and logistics and warehousing units to Reliance Retail, a subsidiary of Reliance Industries.바카라 웹사이트
However, Amazon, as an investor in Future Coupons – a shareholder in Future Retail – contended that the deal would amount to a breach of contract it had with Future Coupons, saying it had arranged a 'call' option with permitted it to purchase all or part of Future Retail's shareholding company within three to ten years of the original바카라 웹사이트August 2019바카라 웹사이트agreement.바카라 웹사이트
The Future group has undergone one round of debt-restructuring. As on바카라 웹사이트October 2020, the debts of Future Retail limited stood at Rs 6278 crore. FRL is backed by a consortium of 28 lenders.바카라 웹사이트