Amazon acquires 49% stake in Witzig Advisory Services

Amazon may acquire some shares in Reliance

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Amazon and Reliance Retail may end up together

Amazon is in initial talks with Reliance Retail to acquire up to 26% in the country’s largest building retail. Though, it is not certain that discussion may result in a deal. The talks began after the negotiations between Reliance and China’s Alibaba Group didn’t work due to some differences in valuation.

“We do not comment on speculation about what we may or may not do in future,” said Amazon spokesperson.

“Our company evaluates various opportunities on an ongoing basis. We have made and will continue to make necessary disclosures in compliance with our obligations under Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 and our agreements with the stock exchanges,” said a Reliance spokesperson.

One of the executives said, according to the revised FDI norms, if the seller owns more than 26% by the platform then it will be deemed a group of company and barred. Amazon wants less than 26% of share so that Reliance Retail can become a seller on its Indian marketplace.

Reliance’s wide network may help Amazon in the long run

Amazon was quite impressed by Reliance, as it holds a leading position in consumer electronics and mobile phones. Amazon can take leverage of Reliance’s wide network of grocery stores where they can fulfil their food and grocery requirements in the long run.

According to the study, the contribution of e-commerce to the total retail in India is expected to rise from 3% now to 7% by 2021. And during the same time, organised retail is going to be doubled from 9% to 18%.

Amazon acquires 49% stake in Witzig Advisory Services

In January 2019, Witzig Advisory Services who have bought the more supermarket stores form the Aditya Birla Group. Recently, Amazon acquired a 49% stake in Witzig Advisory Services. Out of which, 17% of shares in the company are class A voting shares while 32% of shares are class B shares with no voting rights.



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