Amazon and Future Retail expected to reach stake acquisition agreement soon
Amazon is making progress with negotiations on acquiring approximately 9.5 percent of Future Retail and that an agreement is expected within the next ten days, the Press Trust of India reported citing sources.
However, the deal could be delayed until January 2019 should any unforeseen hurdles arise, the sources also warned. Future Retail’s head Kishore Biyani has not yet made an official statement on the matter.
Amazon’s acquisition of a 9.5 percent stake in Future Retail is estimated at a value of Rs 2,000 crore ($300.6 million), the report added. Amazon would pick up the stake as a foreign portfolio investor (FPI).
Amazon already has a stake in two Indian businesses, Shoppers Stop and Aditya Birla Retail’s More. A stake in Future Retail would be the US-based business’ third investment in Indian brick-and-mortar retail. The business could also go on to buy out Biyani in the future, should regulations allow it.
Future Retail operated a number of businesses in the hypermarket and supermarket sectors included Big Bazaar, HyperCity, and Easyday. The business is present in 250 Indian cities through its subsidiaries.
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