Reliance said in August it would acquire the retail and wholesale business as well as the logistics and warehousing business of Future.
Reliance said it'd acquire the retail and wholesale business as well as the logistics business of Future
Amazon said on Wednesday it has sent a legal notice to a promoter of Future Group, alleging the Indian retailer breached the terms of its contract by signing a deal with Mukesh Ambani's Reliance Industries.
The online retail giant last year acquired a 49 percent stake in Future Coupons, the promoter entity which owns a 7.3 percent interest in Future Retail, the operator of more than 1,500 stores in India including grocery chain Big Bazaar.
Amazon's investment in Future Group came with contractual rights that include a right of first refusal and a non-compete-like pact, a source told ET Now, which first reported the news.
The e-commerce firm, in its legal notice, cited a contract arrangement that included "a restricted list" of companies Future was not supposed to enter deals with, ET Now said.
An Amazon spokesperson confirmed the company had started the proceedings.
Amazon, Reliance and Walmart's Flipkart are in a battle to gain market share in India, where millions of middle class customers are newly adopting online purchases of food and groceries due to the COVID-19 pandemic.
Reliance said in August 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 (roughly Rs. 24,771 crores).
The oil-to-telecoms group, whose retail operation already runs close to 12,000 stores, is expanding its so-called new commerce venture, which ties neighborhood stores to Reliance for online deliveries of groceries, apparel and electronics in a space currently dominated by Flipkart and Amazon's Indian arm.
Future Group was not immediately available for comment. Reliance declined to comment.
© Thomson Reuters 2020
OnePlus 8T leaked specs look great but where is the cheaper Nord? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts, Google Podcasts, or RSS, download the episode, or just hit the play button below.
Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.