Mukesh Ambani and Jeff Bezos, two Dhanbali colliding with 25 thousand crores, hurdle over the job of 29 thousand employees
new Delhi. A Singapore court, hearing an appeal from Amazon, has issued an order for an interim stay on the deal between Reliance and Future Group (reliance-future deal). Reliance has signed a deal to buy Future Group’s future retail and wholesale business for Rs 24,713 crore. Following the court’s decision, a media note has been issued by Reliance Group.
In fact, in August 2019, Amazon bought a 49% stake in Future Coupons. For this, Amazon had paid Rs 1,500 crore. The deal stipulated that Amazon would have the right to purchase the stake of Future Retail Limited after a period of three to 10 years. According to Amazon, one of the conditions in the deal was that Future Group would not sell its retail assets to Mukesh Ambani’s Reliance Group.
Amazon accused Future Group of violations
Jeff Bezos’ company, Amazon, said in an arbitration court that Future Group violated the agreement by selling retail assets to Reliance. On the other hand, Future Group said in the arbitration court that if it does not deal with Reliance, then it will have to close its 1500 outlets. This will create a crisis on the jobs of about 29 thousand employees of Future Group and Vendors Firm.
Order to stop the deal
VK Raja, the sole arbitrator in the case of Amazon vs Future vs Reliance Industries, delivered an interim judgment in favor of Amazon. He asked Future Group to stop the deal for now. He said that the deal cannot be reached until the arbitration court reaches a final decision in the matter. An Amazon spokesperson also confirmed the arbitration court’s decision. He said that the arbitration court granted the relief sought by the company.
Ambani wants to play big bets
After occupying oil, telecom and digital markets, Mukesh Ambani is now set to play a big bet in the retail sector. Under this, there is a lot of foreign investment in Reliance Retail. In the current round, the value of Reliance Retail is 4.28 lakh crores. Which sit around 10% of the total market share of retail. Meaning 90 percent of the market is still open. Therefore, both Ambani and Bezos want to capture this big market.