Amazon wins arbitration against Future Retail |
In a big relief for American E-commerce giant Amazon, a Singapore arbitration panel has halted Future Retail and Reliance Retail from proceeding with their deal until an arbitration tribunal is formed. Amazon last year bought 49% stake in Future Coupons Ltd, which owns 7.3% stake in Future Retail. In August, Mukesh Ambani`s Reliance decided to buy retail, wholesale and some other businesses of Future Group in a deal valued at $3.38 billion, including debt. But Amazon`s investment came with contractual rights that include a right of first refusal and a non-compete-like pact, and Amazon later started arbitration proceedings in Singapore. Sources familiar with the matter said the temporary injunction was not automatically enforceable in India, and that the order would have to be ratified by an Indian court. After the order Amazon said they are grateful for the order which grants all the reliefs that were sought. They remain committed to an expeditious conclusion of the arbitration process. Reliance Retail intends to complete the transaction under the terms of the agreement with Future Group without any delay. Reliance Retail Ventures Ltd (RRVL) said on Sunday. It added RRVL has entered into the transaction for the acquisition of assets and business of Future Retail Limited under proper legal advice and the rights and obligations are fully enforceable under Indian Law.
|
|
|
|