InvestorQ : Is it true that Reliance Industries is selling shares worth $20 billion to Amazon?
Rutuja Nigam made post

Is it true that Reliance Industries is selling shares worth $20 billion to Amazon?

Answer
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3 weeks ago


It has been reported by Bloomberg that Reliance Industries may likely sell a $20 billion stake in Reliance Retail Ventures to Amazon. However, the company has denied any such development and has refused to comment.

Bloomberg reported that Amazon had already held discussions with the Reliance top brass about investing in Reliance Retail Ventures. While actual details are not available, it is estimated that in an extreme case, Amazon may infuse $20 bn for a 40% stake in RRVL.

If the deal goes through, it would be much more than just an investment but a strategic tie up. It would be more like what Jio Platforms has signed with Facebook and Google where the investment goes much beyond just a monetary infusion. It will sure create a giant.

It may be recollected that Reliance Retail had placed a 1.75% stake in Reliance Retail on Wednesday to Silver Lakes Partners valuing the overall retail franchise at $58 billion. The real size of Indian retail is $1 trillion and that is the opportunity that is being tapped.

It is supposed to be a great match. Amazon comes with its warehousing capabilities and the control over supply chains. Reliance brings the deep understanding of the Indian markets and insights into the Indian customers. We will have to await the confirmation.