Amazon scores big win as Supreme Court says arbitration restraining Future-Reliance deal enforceable
Published On: Friday, August 6, 2021 | By: Team KnowMyStock
India’s apex court on Friday ruled in favor of Amazon, as Reliance cannot go ahead with its 24,713 crore deal to buy Future Groups retail assets. The court backed an arbitrator's decision to pause the deal in the Jeff Bezos Vs Mukesh Ambani legal fight. The verdict comes as a big win for e-commerce giant Amazon in the battle for the large Indian market. The US-based company had filed pleas against the merger of Future Retail Ltd (FRL) with Reliance Retail.The Indian Supreme Court said the order by a Singapore arbitration court last year which had ruled to stall the deal between the two Indian giants is enforceable in India.Reliance Retail said a year ago it had reached an agreement with Future Group to acquire the latter’s retail and wholesaler business, as well as its logistics and warehousing business, for $3.4 billion.
Amazon, which had invested in one of Future Group’s units, accused the Indian firm of violating its contract and reached the Singapore arbitrator to halt the deal.Amazon’s deal with Future Retail had given the American e-commerce giant the first right to refusal on purchase of more stakes in Future Retail, Amazon argued.
Amazon had first filed a plea before the high court (single judge) for enforcement of the October 25, 2020, Emergency Arbitrator (EA) award by SIAC restraining FRL from going ahead with its Rs 24,713 crore deal with Reliance Retail.
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