Big setback to Amazon, SEBI approves Reliance-Future Group deal

New Delhi : Capital market regulator SEBI has approved plans for Future Group to sell its assets to Reliance. After this, the Bombay Stock Exchange also approved the deal worth Rs 24,713 crore. Amazon had written several letters to the Securities and Exchange Board of India (SEBI) and other regulatory agencies, requesting them not to allow the deal. The Securities and Exchange Board of India has approved the deal with certain conditions. The deal was announced in August last year. BSE has also said that SEBI’s permission on this deal of Future-Reliance Group will depend on the outcome of the pending cases in the court.

The Competition Commission of India (CCI) has already approved Reliance to acquire Future Group’s retail, wholesale, logistics and warehousing businesses. Agreements outside a certain threshold require the approval of the Competition Commission of India (CCI), which helps to monitor misdemeanour business activities in different sectors.

E-commerce company Amazon opposed the deal between Future Group and Reliance. In 2019, Amazon took a 49% stake in Future Coupons for Rs 2,000 crore. There was also a condition that before making a deal with another company, Future would have to tell Amazon first. Only on the refusal of Amazon, Future can sell the holding to someone else.

Amazon filed a petition against the Future-Reliance deal at the Singapore International Arbitration Center. The arbitration center banned the Future-Reliance deal on 25 October. But Future says that the arbitration center’s decision does not apply to them. Amazon had also filed an appeal against the decision of the single-member bench (bench) of the court before the Division Bench of the Delhi High Court. The single bench rejected Amazon’s petition in a December 21 decision.