Amazon, world’s biggest e commerce giant and the proud owner of a 49% stake in Future Coupons (a subsidiary of Future Group), has asked SEBI to suspend its review of Reliance-Future Group deal, until the court case gets resolved. This is the latest attempt made by the American e-retail giant to stop a deal that would significantly threaten its position in India.
Reliance agreed to buy a majority stake in Future Group, the parent company of the second largest retail company in India, for a staggering amount of $3.4 billion. However, this did not go down well with Amazon, which has its own stake in Future Coupons, and says that the deal is a violation of its contract with Future Group.
It had managed to get a Singapore court to intervene in the deal, which issued an interim order, asking both parties to suspend the acquisition. However, both Future Retail and Reliance said that the court’s orders were not enforceable, adding that they have decided to go ahead with the deal any way.
Competition Commission of India (CCI) also gave its blessing to the deal, and thus, approvals from SEBI and the National Company Law Tribunal are the only thing left that stands between Reliance and FRL.
Amazon had filed a court case against the deal, which is still ongoing. Thus, it has asked SEBI to not issue no objection certificate to Future Retail, since the case is still in court.
“In light of this, we request you not to assist Future Retail in violating the process of law and disregarding the interim award, which is deemed to be an order of a civil court under the Code of Civil Procedure, 1908. We hope that your good offices will give due credit to the injunctions operating against Future Retail and follow the rule of law,” Amazon wrote to Sebi.
Up until now, the US company has failed to register any major wins in the case. However, Delhi High Court did dismiss a plea from Future Group, seeking to restrain the e-commerce giant Amazon Inc from interfering with the deal.