Future Retail shares fell 9% on Thursday after Amazon.com sent a legal notice to Future Group, alleging the retailer’s $3.38 billion asset sale to Reliance Industries breached an agreement with the e-commerce giant.
Amazon had last year bought a 49% stake in Future Coupons, which owns a 7.3% stake in Future Retail. In August, Mukesh Ambani’s Reliance decided to buy the retail and some other businesses of Future Group.
Amazon’s investment came with contractual rights that include a right of first refusal and a non-compete-like pact, according to media reports. An Amazon spokesperson said it had launched legal proceedings.
“Amazon will try to explore all options to stop or delay the Reliance-Future deal but Reliance has all the muscle power and it won’t be an easy battle for Amazon to win at the court,” said Satish Meena, senior forecast analyst at Forrester Research.
A letter from the Editor
Dear reader,
We have been keeping you up-to-date with information on the developments in India and the world that have a bearing on our health and wellbeing, our lives and livelihoods, during these difficult times. To enable wide dissemination of news that is in public interest, we have increased the number of articles that can be read free, and extended free trial periods. However, we have a request for those who can afford to subscribe: please do. As we fight disinformation and misinformation, and keep apace with the happenings, we need to commit greater resources to news gathering operations. We promise to deliver quality journalism that stays away from vested interest and political propaganda.
Support Quality Journalism
A letter from the Editor
Dear subscriber,
Thank you!
Your support for our journalism is invaluable. It’s a support for truth and fairness in journalism. It has helped us keep apace with events and happenings.
The Hindu has always stood for journalism that is in the public interest. At this difficult time, it becomes even more important that we have access to information that has a bearing on our health and well-being, our lives, and livelihoods. As a subscriber, you are not only a beneficiary of our work but also its enabler.
We also reiterate here the promise that our team of reporters, copy editors, fact-checkers, designers, and photographers will deliver quality journalism that stays away from vested interest and political propaganda.
Suresh Nambath
