Home news Why Amazon sends legal notice to India’s Future Group over Reliance deal

Why Amazon sends legal notice to India’s Future Group over Reliance deal

by George Mensah
Amazon logo at a logistic centre. Amazon has ordered 1,800

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 ET Now, 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.

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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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