Future Group stocks rally up to 20% after CCI suspends Amazon-FRL deal


Published On: Monday, December 20, 2021 | By:

Future Group stocks rally up to 20% after CCI suspends Amazon-FRL deal

Shares of Future Group's listed companies rallied up to 20 percent on the BSE in Monday's trade, in an otherwise weak market, after the Competition Commission of India (CCI) on Friday suspended Amazon's 2019 deal with Future Retail (FRL). The antitrust agency has also imposed a ₹ 202 crore penalty on the e-commerce major for certain contraventions. In its 57-page order, CCI said, “It considered necessary to examine the combination afresh, given that the two players were known in the online marketplace and offline retailing and had contemplated strategic alignment between their businesses.” The ruling by CCI assumes significance amid the long-drawn bitter legal battle between Amazon and Future Group over the Indian entity's proposed Rs 24,713 crore-deal with Reliance Retail Ventures Ltd (RRVL).

“Amazon had suppressed the actual scope of the Combination and had made false and incorrect statements in relation to the BCAs, which are intertwined into the scope and purpose of the Combination,” the order further said.

Earlier in August 2019, the e-commerce giant Amazon acquired a 49 percent stake in Future Coupons, the promoter entity of Future Retail, for around Rs 1,500 crore. However, exact a year later, the Future Group struck a $3.4-billion asset-sale deal with Reliance Industries (RIL) in August 2020. 

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