Mukesh Ambani's $3.4 billion deal with Future stalled
By MYBRANDBOOK
The Supreme Court halted regulatory approval for the Future Group's $3.4 billion asset sale to Reliance Industries Ltd., delaying the deal in a boost for Amazon.com Inc., which wants to scuttle the transaction in its bid to dominate the country's retail sector. Agreeing with the American e-commerce giant's petition, the top court on Monday overturned a lower court's ruling and said the company tribunal can continue hearing the case but must not give a final nod till further orders. The court also sought written statements from Future Retail Ltd. and said it will hear the case after five weeks. Future's stocks and bonds fell.
The latest verdict restores the legal advantage for Jeff Bezos-founded Amazon that secured an interim stay on the deal from a Singapore arbitration tribunal in October. It accused the Future Group of violating a partnership contract when it agreed to sell assets to billionaire Mukesh Ambani's conglomerate last year. The Monday order, however, endangers Future Retail, which is struggling to pay debt and has warned of insolvency.
Future Retail's stock fell as much as 10% and its dollar bond maturing in 2025 dropped 3.8 cents on the dollar after the court order Monday, Bloomberg-compiled prices show. Reliance Industries also slipped as much as 2.8%.
The cash strapped Indian retailer, which says it would collapse should the deal with Reliance fail, is caught between two of the world's richest men as they compete for dominance in India's estimated $1 trillion consumer retail market. The legal dispute over Future has turned into a fierce legal wrangle across courtrooms in two countries. Amazon is unwilling to cede any competitive advantage to Reliance in the only billion-people-plus market left in the world after the American firm lost out to local rivals in China.
The case keenly watched by investors as it sets a precedent on the validity of emergency decisions by foreign arbitrators in India. The verdict comes at a time when Amazon is increasing its footprint in the country. The U.S. firm announced this month that it was setting up manufacturing operations in the South Asian country.
BREAKING NEWS
TECHNO TRENDS
Dell spins off VMware stake to pay $9.7 Billion to reduce the
Dell Technologies Inc said on Wednesday it would spin off its 81 percent s...
IT services giant Ensono is acquired by KKR
Ensono, a leading hybrid IT services provider, it provides a comprehensive ...
Route Mobile is investigating claims on the data leak
Hackers has able to compromised servers of enterprise communications firm ...
Pine Labs acquires Fave to mark entry in consumer payments
Pine Labs has announced the acquisition of Fave for $45 million, as it loo...
E-Magazine
TECHNOTAINMENT
Stunning looks of Janhvi Kapoor in swimsuit makes-up
The stunning looks of actress Janhvi Kapoor in silver swimsuit looks abso
Catch all the action from the 66th Vimal Elaichi Filmfare Awar
Facebook today announced that it has partnered with Worldwide Media to pro
MOVERS & SHAKERS
LTI names Anil Rander as the new CFO
Larsen & Toubro Infotech has appointed Anil Rander as its Chief Financia
Pega India appoints Smriti Mathur as Senior Director and Head
the software company that crushes business complexity at the world's leadin
OPEN YOUR EYES
INTERVIEWS
CSS Corp witnesses an accelerated growth by having embraced t
The evolution of technology has made it a consumers’ world today and cust
Array Networks prides itself in being a customer centric compa
Array India’s story was laid on a solid foundation to focus and help eGov
HOT PICK
TECNO unveils SPARK 7 6000mAh battery and 16MP AI Dual rear ca
TECNO has announced the launch of SPARK 7 - yet another future-ready devic
Xiaomi Sale today Get 48 MP Camera only in Rs 1 with 600mAh Ba
Xiaomi has organized the Mi Fan Festival 2021 offer on its website in Ind
MAKE IN INDIA BRANDS
PAYTM- One97 Communications Ltd
Numeric Power Systems Ltd.
Quick Heal Technologies (P) Ltd.
Knowlarity Communications Pvt. Ltd
EMINENT CIO'S OF INDIA
ICONS OF INDIA
BHAVISH AGGARWAL
Bhavish Aggarwal is an entrepreneur, who is also the co-founder and CE...
SAMEER GARDE PRESIDENT - CISCO INDIA & SAARC
Sameer Garde is President of Cisco’s India and SAARC theatre.Sameer ...
AJAY PRAKASH SAWHNEY
Ajay Prakash Sawhney is a 1984 batch Indian Administrative Service off...
CMO of the Year
Panel Discussion Session
Women leadership in Technology Sales
WOMEN LEADERSHIP
IMAGE GALLERY
TRENDS IN TECHNOLOGY
MORE VIDEOS
ADVERTISEMENTS
TECHNOLOGY DISRUPTION
MOST TRUSTED BRANDS
