India’s Supreme Court issued a temporary halt on retailer Future Group's $3.4B sale to Reliance Industries, effectively handing Amazon a win as the case continues. Monday's verdict bars a final ruling from a tribunal until the high court hears Amazon's objections to the retail sale.
- Amazon is seeking to block Future Group from selling its retail assets to Indian conglomerate Reliance.
- Reliance purchased Future Retail for $3.4B in August. In 2019, Amazon acquired a 49% stake in Future Group, which owns a small stake in Future Retail. This gave Amazon a 3.58% stake in Future Retail.
- Amazon claims Future Group violated a partnership contract. Following a lower court ruling that didn't side in its favor, Amazon has taken this case to the Indian Supreme Court in an attempt to block the deal; the company claims it will face “irreparable harm” if the acquisition moves forward.
- On Monday, the Indian Supreme Court ruled that the National Company Law Tribunal, which must sign off on the deal, cannot “sanction” the acquisition until it fully hears the case in March. The court also asked for written statements from Future Retail.