Reliance Retail Ventures said it intends to complete the transaction with the Future group without delay.
Reliance Retail said it “intends to enforce its rights and complete the transaction under its agreement with Future Group without delay” after Amazon.com, the major US-based e-commerce company, won an award. provisional against the Kishore Biyani group company for its agreement with Reliance Retail Ventures Ltd (RRVL). The Singapore-based single judge arbitration tribunal had prevented Future Retail from selling its retail business to Reliance Industries for Rs 24,713 crore. The indebted Kishore Biyani group company had previously signed a deal to sell its retail, wholesale, logistics and warehousing units to billionaire Mukesh Ambani’s Reliance Industries, through its subsidiary Reliance Retail Ventures.
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In approving an interim award in favor of Amazon, VK Rajah asked the Future group to put the deal on hold and said the deal cannot be carried out until it finally decides the matter, sources with direct knowledge of the development said.
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Reliance Industries’ retail arm, Reliance Retail Ventures Limited (RRVL), said it has been briefed on the interim order approved by the Emergency Arbitrator in the arbitration proceedings and intends to complete the transaction with Future Group without delay.
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“RRVL has entered into the transaction for the acquisition of assets and businesses of Future Retail Limited under proper legal advice and the rights and obligations are fully enforceable under Indian law. RRVL intends to enforce its rights and complete the transaction on terms of the scheme and the agreement with the Future group without delay, Reliance Retail said in a statement.
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Regulatory brands provide breathing space for Amazon as it seeks to stop a deal that could give Ambani unprecedented dominance in the race for the country’s consumer retail market.
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Reliance Industries, already the nation’s largest brick and mortar retailer, has plans for the online segment that would see it take on Amazon in what is a rising market.
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Last year, Amazon bought a 49 percent stake in one of Future’s unlisted firms, Future Coupons, entitled to buy from Future Retail for a period of three to ten years. Future Coupons owns a 7.3 percent stake in Future Retail.
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However, in August, Reliance Retail decided to buy retailers, wholesalers, and some other businesses from Future Group. On August 29, 2020, the Future group announced the sale of its retail, wholesale and logistics businesses to Reliance Retail Ventures Limited, the retail arm of Reliance Industries.
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Reliance Industries’ deal to acquire the retail business of rival Future Group, along with the launch of JioMart in early May, was intended to rival Amazon’s local unit and Walmart’s Flipkart in the country’s huge retail market.
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Reliance Retail Ventures operates retail businesses spanning supermarkets, consumer electronics chain stores, cash and bulk wholesale businesses, fast fashion stores, and the JioMart online grocery store.
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A host of global investors, including TPG, GIC, Silver Lake Partners, KKR, and Mubadala, have invested in the retail arm of Reliance Industries this year.
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