Setback for Amazon, CCI clears Future-Reliance deal
In a massive setback for e-commerce giant Amazon, the Competition Commission of India has approved the much-anticipated Future Group-Reliance Retail deal.
FollowIn a massive setback for e-commerce giant Amazon, the Competition Commission of India has approved the much-anticipated Future Group-Reliance Retail deal.
The order came even as the Delhi High Court today reserved its order in the suit filed by Future Retail against Amazon in connection with its deal with Reliance, which was recently stalled by an Emergency Arbitrator of the Singapore International Arbitration Centre.
In a statement, the CCI said: "Post re-organisation of the Transferor Companies, Reliance Retail Ventures Limited and Reliance Retail and Fashion Lifestyle Limited will acquire retail and wholesale undertaking; and the logistics and warehousing undertaking of Future Enterprises Limited."
Reliance Retail Ventures Limited, a subsidiary of Reliance Industries Limited, is an unlisted company. RRVL is engaged in the business of retail supply chain management.
Reliance Retail Limited, a subsidiary of RRVL, undertakes retail operations in India across segments such as food and grocery, consumer electronics, apparel, footwear, and accessories.
Reliance Retail and Fashion Lifestyle, a wholly owned subsidiary of RRVL, has been recently incorporated to carry out various businesses including the businesses proposed to be transferred to it as part of the proposed combination.
According to the CCI order, the following Future Group entities will be reorganized by way of amalgamation with Future Enterprises Limited:
* Future Consumer Limited
* Future Lifestyle Fashions Limited
* Future Retail Limited
* Future Market Networks Limited
* Future Supply Chain Solutions Limited
* Futurebazaar India Limited and its subsidiaries.
Earlier this year, Kishore Biyani-owned entity Future Retail, which runs Big Bazaar and other retail outlets, had announced its deal with Mukesh Ambani-owned Reliance Retail Ventures Limited.
Subsequently, Amazon, an investor in one of the shareholders of Future Retail, moved the Emergency Arbitrator on the ground that Reliance fell in the negative list of 30 entities with which Future Group could not transact.
The Emergency Arbitrator had then passed an interim award injuncting Future Group from taking any steps in furtherance of the transaction with Reliance.
