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Future Group Said to Challenge Court Order Blocking Reliance Retail Deal in Dispute With Amazon

Future Group Said to Challenge Court Order Blocking Reliance Retail Deal in Dispute With Amazon

Amazon had argued in a New Delhi court that Future breached certain pre-existing contracts by selling retail assets to Reliance.

By Reuters | Updated: 3 February 2021 14:38 IST

Future Group Said to Challenge Court Order Blocking Reliance Retail Deal in Dispute With Amazon

A court stalled Future Group's sale of a swathe of assets to rival Reliance Industries after objections

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Highlights

Shares of Future Retail dropped 5 percent in early trade on Wednesday
Reliance Industries fell as much as 1.2 percent but recovered later.
Amazon argued in Delhi court that Future breached pre-existing contracts

India's Future Group will challenge a New Delhi court order that has blocked its $3.4 billion (roughly Rs. 24,700 crores) retail assets sale on objections of business partner Amazon, a source told Reuters on Wednesday.

A court stalled Future Group's sale of a swathe of assets to rival Reliance Industries on Tuesday after Amazon raised objections to the deal, in a battle of the retail titans that could reshape the shopping sector.

The appeal against that order is set to be filed later on Wednesday in the court, before a bigger two-judge bench, the source said, declining to be identified

Future Group CEO Hits at Amazon's Bid to Stall Retail Deal in Internal Memo

Future and Amazon did not immediately respond to a request for comment.

Shares of Future Retail dropped 5 percent in early trade on Wednesday. Reliance Industries fell as much as 1.2 percent, but recovered later.

US online giant Amazon had argued in Delhi court that Future breached certain pre-existing contracts by selling retail assets to Reliance.

Reliance-Future’s $3.4-Billion Deal Cleared by CCI

It had asked the court to enforce an earlier order from an arbitrator who put the Future-Reliance deal on hold. The court on Tuesday said the arbitration order was enforceable and asked all Indian authorities to maintain status quo on the transaction, effectively putting the deal on hold.

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