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By
Reuters API
Published
Oct 8, 2020
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Amazon sends legal notice to India's Future Group over Reliance deal

By
Reuters API
Published
Oct 8, 2020

Amazon.com Inc has sent a legal notice to a promoter of India's Future Group over the retailer's deal with Reliance Industries , ET Now reported on Wednesday, citing sources.




In August, Mukesh Ambani-led Reliance said it would acquire the retail and wholesale business as well as the logistics and warehousing business of Future in a deal valued at $3.38 billion, including debt.

Amazon's investment in Future Group came with contractual rights, which includes a right of first refusal and a non-compete-like pact, a source told, adding that this was the main reason why the legal notice was sent to Future Coupons.

Amazon, in its legal notice, cited a contract arrangement that included "a restricted list" of companies Future was not supposed to enter deals with, according to the report.

Amazon did not immediately respond to a Reuters request for comment.

Amazon last year acquired a 49% stake in Future Coupons Ltd, which owns a 7.3% interest in the retail group that operates more than 1,500 stores in India, including grocery chain Big Bazaar.
 

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