JOIN USAmazon sends legal notice to Future Group over Reliance deal
Amazon.com Inc has sent a legal notice to a promoter of India's Future Group over the retailer's deal with Reliance Industries, ET Now reported on Wednesday, citing sources.
In August, Mukesh Ambani-led Reliance said it would acquire the retail and wholesale business as well as the logistics and warehousing business of Future in a deal valued at $3.38 billion, including debt.
Amazon's investment in Future Group came with contractual rights, which includes a right of first refusal and a non-compete-like pact, a source told ET Now, adding that this was the main reason why the legal notice was sent to Future Coupons.
Amazon, in its legal notice, cited a contract arrangement that included "a restricted list" of companies Future was not supposed to enter deals with, according to the report.
Amazon did not immediately respond to a Reuters request for comment.
Amazon last year acquired a 49 per cent stake in Future Coupons Ltd, which owns a 7.3 per cent interest in the retail group that operates more than 1,500 stores in India, including grocery chain Big Bazaar.