Amazon set for face-off with Mukesh Ambani's RIL for India retail dominance
By Upmanyu Trivedi, Saritha Rai and P R Sanjai
Amazon.com Inc. and Mukesh Ambani’s Reliance Industries Ltd.’s fight for dominance of India’s lucrative e-commerce space is turning into a face-off, with both sides battling over the assets of a supermarket chain that could be key to their wider ambitions.
Mukesh Ambani and Jeff Bezos, two of the world’s wealthiest men, want the stores and warehouses of Future Retail NSE -3.61 % Ltd., which has penetrated Indian cities and small towns with sales of everything from grocery to fashion and ronics. Amazon, which owns stake in a Future unit, and Reliance have in recent months made pacts with the Future Group, which they say are now being violated.
Reliance intends to purchase Future Retail’s assets “without any delay,” the conglomerate’s unit said in a statement late Sunday, after a Singapore arbitration court restrained Future from going ahead with the transaction. Reliance had agreed to buy Future’s retail, wholesale, logistics and warehousing units for $3.4 billion in August, pushing Amazon to request an emergency hearing to stall it.
In a separate statement Monday, Future Retail said it wasn’t to the Singapore proceedings and the matter “will have to be tested” under Indian arbitration law.
After Vedanta, another thriller .... life is very exciting !!!
All parties should respect international court verdict and the SPA agreement between Amazon and Future that gives first of refusal to Amazon in Future stake sale. Disobidience will cost Reliance and Ambani family in future. Mukesh Ambani should not sow the difficult seeds for his next generations.
Ambani is an indian. The Reialnce group has created millions of jobs directly in factories and indirectly in sales, distribution, retail. All wealthremains inside. Amazon's Bezos is dum ch chineese products MASQUERADING with Indian addresses THEREBY KILLING MILLIONS OF JOBS AD FORCING INDUSTRIES but supporting traders, syphoning off profits to USA . IF INDIANS WERE TO LEARN FROM HISTORY, THEY MUST RECOGNISE THAT AMAZON IS THE 21ST CENTURY EAST INDIA COMPANY
Why accuse others when we are responsible for not " producing, selling and dum ch Indian products "
it's becoming like east India company, which misused it's position and took over the country.
today the times have changed, as a foreign company, be where you have to be.
don't try the Britishers tactics to take over our economy.
Mr Ambani would have weighed all pros and cons of the deal and definitely will find a way to ward off Amazon for the sake of investors.
Vaithianathan R M
The agreement should be covered first by Indian Arbitration Rules and the Indian Courts. The Gt to Gt agreement on International Arbitration cannot precedence of this rule as this agreement is presumably drafted and signed in India with Amazon giving a PA to its Indian CEO.
india is money pit.
u mean a Black Hole, where gravity pulls in everything, nothing gets out ?!
How come this clause was missed by Reliance legal team during the proposal..? pathetic. why it took this long for Amazon to rise this issue.? fishy!!
It is hard to believe but I would tend to say that there has been a goof up on the legal side by Reliance.
The way to get out of this would be for future Group to declare itself bankrupt ( which might trigger covenants in the agreement with zon or render it void) and then go under the insolvency act with the creditors deciding on the buyer. this might turn into a beauty contest and will end in a win win situation for the creditors.
India has now become a country of cheats and fraudster, including in our legal sy em. This is the second case after Vodafone. Pretty shamefull.
Amazon is trying to prect their investment in Future Group, they dontvwznt to be cheated... But the PAID- MEDIA **T0I** -group** is showing it as corporate war.. SHAME.
I am sure Ambani must
have checked the law
governing the issue
before acquiring Future