InvestorQ : With CCI approving the RRVL / Future Enterprises merger deal, is it a slap on the face of Amazon?
Anamika Sodhani made post

With CCI approving the RRVL / Future Enterprises merger deal, is it a slap on the face of Amazon?

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Angel dcosta answered.
1 week ago
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The Competition Commission of India or CCI approved the Rs.24,700 crore acquisition deal of the retail, wholesale, logistics and warehousing businesses of Future Group by Reliance Retail Ventures or RRVL. The deal had been announced in Aug-20 but it had recently faced some hitches after Amazon had secured a Singapore arbitration order against the deal.

Arguing for Future Retail, Harish Salve had opined that Amazon had no right to control any voting in FRL as there was no such deal or commitment to give right of first offer to Amazon. Reliance Retail had mega plans to dominate the retail Kirana ecosystem in India and the spread and reach of Future group was critical to them.

It may be recollected that on October 25, the Singapore International Arbitration Centre or SIAC passed an order in favour of Amazon to stall the merger. But the CCI clearance is a signal that the government may not give too much credence to such orders.

Amazon had even written to SEBI, stock exchanges and the CCI seeking the deal to be stalled claiming alleged breach of contract. Clearly, CCI has refused to take cognizance of the order, so it is a signal of how the courts may deal with the case. Harish Salve had argued for Future Retail that the arbitrator order had no sanctity under Indian law; unlike court orders.

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