Future Retail’s sale of assets to Reliance Industries (RIL) has received approval from the anti-trust watchdog, the Competition Commission of India (CCI). It is like a setback for Amazon.com Inc. as it had approached CCI to halt the Rs 24,700 crore deal.
Amazon approached both CCI and Sebi complaining that the sale violated contractual agreements between Future and Amazon.
“Commission approves acquisition of retail, wholesale, logistics and warehousing businesses of Future Group by Reliance Retail Ventures and Reliance Retail and Fashion Lifestyle,” CCI said in a tweet.
The debt-ridden Future Group had agreed to sell various assets of Future Retail to Reliance for Rs 24,713 crore in August. Amazon, which holds a 49% stake in Future Coupons, a promoter entity of Future Retail, objected to the deal and filed an emergency arbitration at the Singapore International Arbitration Centre (SIAC). Amazon claimed that its contract with Future Coupons bars Future Retail from selling assets to Reliance. On 25 October, the SIAC issued an interim order stopping the sale. Future challenged the SIAC order in the Delhi high court, submitting Amazon was not a Future Retail shareholder and has no say in its affairs. Separately, a single-judge bench of the Delhi HC reserved orders on Future’s application seeking interim relief to restrain Amazon from interfering in the RIL deal.
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