- Amazon won a major legal victory in India on Friday as the country’s Supreme Court blocked a $3.4 billion deal reached by a domestic e-commerce competitor.
- Last year, competitor Reliance reached an agreement to acquire the assets of Future Retail, a subsidiary of Future Group.
- The AOL giant approached the Singapore International Arbitration Center last year, which shelved the Reliance transaction.
The US e-commerce giant Amazon won a major legal victory in India on Friday after the Supreme Court of India blocked a $3.4 billion deal reached by domestic rival Reliance.
Amazon, Walmart-backed Flipkart, and Reliance, owned by Asia’s richest man Mukesh Ambani, are in a huge battle to dominate the online retail industry in this country of 1.3 billion people.
Reliance reached an agreement last year to acquire the assets of Future Retail, the second largest supermarket chain in India, owned by Future Group.
The acquisition of Future Group, which owns some of India’s most well-known supermarket brands such as Big Bazaar, will strengthen Reliance’s influence in the highly competitive e-commerce field.
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According to reports, Amazon owns shares in a company under the Future Group, including the option to acquire the flagship company, claiming that the deal with Reliance constitutes a breach of contract.
Last year, the US online giant approached the Singapore International Arbitration Center, which shelved the Reliance transaction after discovering Amazon’s objections.
Amazon stated that the arbitrator’s order is binding, while Future questioned its legality. On Friday, the Supreme Court ruled that the order was valid.
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Reliance or Amazon did not immediately comment.
According to Bloomberg News, Amazon, owned by the world’s richest man Jeff Bezos (Jeff Bezos), has pledged to invest US$6.5 billion in India.
According to Bloomberg, Wal-Mart acquired Flipkart for US$16 billion in 2018, and recently raised US$3.6 billion in the country’s largest financing, with a valuation close to US$38 billion.
The founder of Future Group Kishore Biyani was once known as the king of retail in India, but he has been struggling in recent years due to the heavy blow to his empire by the coronavirus pandemic.
Reliance’s share price fell more than 2% in Mumbai.
