Amazon Against Reliance-Future Group Merger

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Delhi, 06 August 2021: America’s e-commerce company Amazon possesses a major victory in the Supreme Court. In fact, the Supreme Court has upheld Amazon’s appeal on the deal between Reliance and Future Group. The court has upheld the decision of the Emergency Tribunal (EA) of Singapore to stay the deal in the emergency hearing in October. Amazon has objections to this deal. Amazon has questioned the deal, citing its stake in Future Group’s coupons.

Amazon had told the court that the Singapore Emergency Tribunal’s (EA) decision restraining Future Group from the merger deal with Reliance Retail was “valid” and must be implemented.

Amazon had challenged the decision of the Division Bench of the Delhi High Court, which cleared the way for the Reliance-Future Group deal, in the Supreme Court. Amazon had argued in court that the Biyani family of Future Group had negotiated some settlement with it. He is sure to abide by EA’s decision barring Future Group from proceeding with the merger affecting Reliance Retail.

Amazon features a problem with the ownership of the deal between Reliance and Future Group. Amazon had a 49 percent stake in Future Coupons. According to the deal between Amazon and Future Group, if the corporate is sold, Amazon will have the primary right of purchase, but this wasn’t followed within the Reliance-Future Group deal.

After the court’s decision, the stock of Reliance Industries has registered a fall of more than 2 per cent. Apart from Reliance, shares of Future Group’s retail company have also seen a fall.