Reliance-Future Group deal: Amazon sends legal notice, alleges breach of contract

Economic Times, 

October 08, 2020

Mumbai: Global retail giant Amazon has sent a legal notice to promoters of Future Group for allegedly breaching a non-compete contract over the latter’s deal with Reliance Industries NSE -0.81 % (RIL), ET Now reported on Wednesday.


In late August, RIL said its unit Reliance Retail Ventures (RRVL) is acquiring the retail and wholesale business and the logistics and warehousing business from the Kishore Biyani-promoted Future Group as going concerns on a slump sale basis for a lump sum total consideration of Rs 24,713 crore.


In August 2019, Amazon bought a 49 per cent stake in Future Coupons for about Rs 1,500 crore. The latter owns 7.3 per cent stake in Future Retail NSE -5.44 % that operates in more than 1,000 stores under Big Bazaar, Fbb, Foodhall and Easyday Club brands.


The notice alleges Future Group did not meet the criteria of its deal.

The Amazon-Future Group dispute grievance redressal mechanism includes knocking the courts’ doors and arbitration process as well.


ET Now said RIL, Amazon and Future Group declined to comment.


Ahead of the report, Reliance Industries shares closed 2.13 per cent at Rs 2,257.15, while Future Retail dropped 1.89 per cent to Rs 88.30, and Future Enterprises declined 1.68 per cent to Rs 11.74.

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