NEW DELHI (Reuters) – Indian stock markets on Wednesday gave the $ 3.4 billion Future Group deal to sell their retail assets, one step closer to a deal that worsened ties with its business partner Amazon.com Inc.
Future and Amazon are embroiled in legal battles over the Indian group’s August deal with Reliance Industries. The American e-commerce giant claims that the agreement violated some of its pre-existing contracts with Future.
In late-night notifications, Indian stock exchanges said they had no objection or objection to the deal, saying they had reached a decision after contacting India’s Securities and Exchange Board (SEBI).
SEBI has informed that Future should share various details about the company’s ongoing litigation with Amazon as it approaches the Indian National Company Law Tribunal, which must also sign the agreement, the Stock Exchange’s notification said. Bombay.
SEBI did not make its observations public separately.
Reliance and Future did not immediately respond to a request for comment.
The notifications will be an obstacle for Amazon, which in recent weeks has repeatedly written letters to SEBI and stock exchanges to suspend the review of the agreement.
Amazon also pulled Future in front of a Singapore arbitrator, who adopted an interim order in October, saying the Reliance deal should be stopped. The future says that order is not obligatory for her.
Following the headline of the exchanges, Amazon in a statement said it would continue to seek redress to enforce its rights, noting that the approvals were subject to the outcome of the ongoing arbitration process and other processes.
The outcome of the dispute involving Future, Reliance and Amazon is seen in shaping India’s retail landscape, particularly in deciding who will become the leader of a food market that is estimated to be worth about $ 740 billion a year. until 2024.
Report by Aditya Kalra in New Delhi; Editing by Euan Rocha and Steve Orlofsky