MUMBAI: Indian conglomerate Reliance dismissed Amazon’s push to delay acquisition of national retail giant Future group, despite an arbitration panel suspending the deal after objections from the US online titan.
The dispute is the latest development in a protracted battle for dominance in India between Reliance, owned by Asia’s richest man, Mukesh Ambani, and Amazon, whose founder Jeff Bezos is the richest person in the world.
Amazon, which owned a stake in one of the Future Group firms that allegedly included a call option in the flagship company, claims that the Reliance deal of $ 3.4 billion, announced in August, amounted to a breach of contract.
After an arbitration panel ordered to suspend the deal in the wake of Amazon’s request, Reliance said Sunday night that it would nonetheless “enforce its rights and complete the transaction in terms of the scheme and the agreement with the group. Future without delay. ”
Reliance’s retail subsidiary RRVL said in a statement that it had followed “proper legal advice” before agreeing to buy Future Group, adding that the deal was “fully enforceable under Indian law.”
Reliance, backed by Amazon and Walmart Flipkart they have been caught up in frenzied competition for a slice of India’s lucrative online marketplace.
The acquisition of Future Group, which owns some of the best-known supermarket brands in India, such as Grand bazaar, would strengthen Reliance’s presence in the highly competitive e-commerce industry.
The arbitration panel has 90 days to render a final verdict on the Dependency-Future agreement.
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