InvestorQ : What is Future Retail now planning to do with Amazon planning to approach the Supreme Court against the High Court order favouring the merger?
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What is Future Retail now planning to do with Amazon planning to approach the Supreme Court against the High Court order favouring the merger?

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2 months ago
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It may be recollected that in the previous week, the Delhi High Court had ruled in favour of the RRIL / FEL merger striking down the earlier verdict of putting the deal on hold. Pos that decision by the High Court, Amazon has opted to approach the Supreme Court to pass an order to stall the FRL-RRIL merger worth Rs.24,700 crore.

Meanwhile, the Future group led by Kishor Biyani has confirmed that it will fight the case legally and has ruled out any compromise on the matter for the time being. In fact, the Future Group has gone ahead and disclosed in a recent interview that Amazon had demanded a sum of $40 million or Rs.290 crore from Future Retail for forfeiting the right of first refusal.

The right of first refusal has been the bone of contention in this case. Amazon contends that it should have been given the right of first refusal considering it holds a small stake in Future Coupons. However, Future Group is of the opinion that there is no such requirement in the agreement and anyways Amazon is banned from buying a majority stake in Indian retail.

The scheme of arrangement for the merger of FEL and RRIL has already secured the final approval from the courts, the NCLT and also from SEBI, the capital markets regulator. Amazon approached the Supreme Court after the high court had ruled in favour of the Reliance / FRL merger demanding that the verdict of the Singapore Arbitration Tribunal be respected.

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