A Singapore arbitration court halted the $3.4b sale of Future Retail to Reliance Retail after Amazon had filed a legal proceeding. Reliance Retail, India's largest retailer, issued a statement claiming the acquisition is acceptable under Indian law and it intends to complete it.
- In 2019, Amazon acquired a 49% stake in Future Group, which owns 7.3% of Future Retail. This gave Amazon a 3.58% stake in Future Retail.
- Amazon obtained a right of first refusal and a non-compete. Amazon also received exclusive rights to sell Future Group’s products online.
- Reliance Retail agreed to purchase Future Retail earlier this year. However, Amazon claims the acquisition violates contractual agreements. The injunction prevents the transaction from being completed for at least 90 days.
- Amazon has been competing for dominance in the Indian e-commerce market, and has invested $6.5b into Indian operations, including $1b earlier this year. E-commerce only accounts for 3-7% of total retail spending in India. In 2018, total e-commerce spending in India was $50b, though this total is expected to quadruple to $200b by 2027.
- Reliance Retail is India's largest retailer. Earlier this year, it launched its own e-commerce platform, Jio Platforms, which has raised more than $20b from investors such as Facebook and Google.