Reliance Industries $3.5 billion takeover of Future Retail has been given the green light by India’s antitrust regulator, which ignored Amazon’s attempts at stopping the deal from taking place.
The Competition Commission of India has also approved the deal by Reliance Retail Ventures and Reliance Retail.
Amazon asked the antitrust and market regulators not to allow the deal to go through, claiming that the transaction had broken a contract the company had with the e-commerce company. This approval makes the race between Amazon and Reliance for the top spot in India’s estimated $1 trillion retail markets, a lot more intense. This deal would’ve been very helpful for Amazon to gain that status.
This approval was received the same day the Delhi High Court had come out with its verdict in Future’s petition against Amazon, which was written to local antitrust and market regulators, which looked to block Amazon from coming in between its asset sale.
Amazon also blamed Future and the company’s founder, Kishore Biyani of going against disclosure rules, the court filings read, according to Bloomberg.
Amazon had also bought 49% in an unlisted firm, owned by Future, along with the rights to acquire the flagship Future Retail, in the next few years. However, the company had gone through a large cash crunch due to the pandemic and lockdown.
Amazon was looking into increasing its stake in Future Retail, in May, but there has been no more news regarding the matter since. Instead, Future went on to make a deal with Reliance, which did not sit right with Amazon. Supposedly, the contract involving Amazon and Future, states that the company would not be able to make a deal with a listed number of companies, and Reliance is supposedly one of those companies in the list.