InvestorQ : What is likely to be the outcome of the ongoing battle between Reliance, Future Group and Amazon?
vaishnavi mhatre made post

What is likely to be the outcome of the ongoing battle between Reliance, Future Group and Amazon?

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vidhya Laxmi answered.
3 weeks ago
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Let me first clarify that Reliance is not exactly a part of this dispute. They have made the offer and the onus is on the Future group to create the environment to catalyze the deal. The real issue is between Amazon and Future group.

You would have noticed that the ongoing spat between Amazon and the Future group has already taken twists and turns. It may be recollected that Amazon had objected to the RIL/Future deal on the grounds that as a stake holder in Future Coupons, they had the right of first refusal for Future group stake.

A few weeks after Amazon secured an order putting a stay on the deal from a Singapore arbitration court it has now accused Future Group of indulging in insider trading in these stocks ahead of the Reliance deal announcement. This is a serious allegation.

Amazon had sought a stay on proposed Rs.24,000 crore deal between Reliance Retail and Future Enterprises via an order from a Singapore arbitration court. Amazon had also informed the stock exchanges and SEBI about the contents of the order.

Future group has denied any deal with Amazon, and even gone to the extent of mentioning that any such demand by Amazon would be null and void due to the existing restrictions placed on multi-brand retail by the government. However, the real issue is larger.

What global investors would be keen to see is to what extent the Indian courts, government and corporates respect global arbitration orders. That could be a key determinant of how global players are enthusiastic about dealing with Indian players.

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